Hong Seng To Build RM3 Billion Nitrile Glove Plant In Kedah Rubber City

Hong Seng Consolidated Berhad is set to buld a new nitrile butadiene latex (NBL) plant in Kedah, with an approximate price tag estimated to be in the region of RM3 billion.

Located in the Kedah Rubber City, the NBL project will be completed in stages over 4 phases and is targeted to have a full production capacity of 960 kilo-tonnes per annum with the first phase of 240 KTPA expected to commence its commercial production by Q2, 2024.

Menteri Besar of Kedah Dato’ Seri Haji Muhammad Sanusi who was at the groundbreaking ceremony was optimistic that this strategic high-impact development project implemented by Nothern Corridor will be able to attract investors from within and outside the country based on its long-term investment potential and bring many benefits to the local economy.

Group Managing Director Dato’ Seri Teoh Hai Hin explained that this flagship project will position Hong Seng as the first public-listed and large-scale nitrile producer in Malaysia, which in turn is the world’s largest glove producer.

He cited that this will be a game-changer for Kedah Rubber City, as it contributes to the reduction of carbon footprint in the supply chain process and improvement of social-economic development in the northern region of Malaysia. In addition to reducing the local region’s nitrile latex imports and the national trade deficit by approximately RM5 billion, up to RM5 billion in private investment and 1,600 job opportunities will be created from all these investments, which will be a catalyst for economic recovery for those who have been affected by the pandemic.

“PCF has previously worked with NBL manufacturers in the US, Europe, China, and Malaysia, and now they will be in charge of developing the cutting-edge NBL technology that Hong Seng will be using. The NBL produced by Hong Seng will be designed to meet the increasing demands of today’s glove market while adhering to international quality standards. It creates an end product with excellent physical properties and characteristics that give it a competitive edge over the choices available in the market currently,” Teoh said.

Seperately, Hong Seng’s wholly-owned subsidiary HS Petchem Logistics Sdn Bhd officially received a Letter of Offer from Penang Port Sdn Bhd to sublease a piece of 12,140 sq.m. leasehold land for 20 years. This is to construct and operate a tank farm facility for feedstocks storage of core materials for nitrile latex production while providing integrated logistics services.

The Company said that due to the rise in demand of nitrile gloves, the raw materials required are also in severe shortages, therefore, by setting up its own feedstocks tank farm facilities, Hong Seng will be able to capture a substantial market and fill up a void in the supply chain. The construction is expected to be completed within 18 months in sync with the production commencement of the NBL project.

To project is a result from the Hong Seng accepting a Letter of Offer mid this year by Northern Corridor Implementation Authority (NCIA) to sublease 102.6 acres of industrial land located at Kedah Rubber City for a period of 60 years for the purpose of setting up a NBL manufacturing plant.

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