Seng Fong Holdings Bhd has completed the acquisition of a 51% stake in Ghana-based Rainbow Rubber Buying Center Ltd (RRBC) for GHS280,500, or about RM100,500, giving the Malaysian rubber processor a foothold in Africa as it seeks cheaper raw materials and a larger global market share.
RRBC operates a rubber processing facility in Ghana, extending Seng Fong’s sourcing footprint beyond Southeast Asia and providing the group with an alternative raw material base.
Seng Fong Executive Director Jimmy Er Tzer Nam said the acquisition gives the group a more secure source of raw material outside Southeast Asia while supporting plans to scale production and capture greater market share.
He added that Africa offers some of the most competitively priced raw rubber globally, which could strengthen the group’s cost position.
The move is also expected to reduce Seng Fong’s dependence on a single sourcing region at a time when weather risks are rising across Southeast Asia’s rubber-producing markets.
The group said lower rubber prices in Africa could further support raw material cost efficiency.
With the expanded footprint, Seng Fong expects production output to increase by about 40,000 metric tonnes in the first year, with further gradual growth thereafter.
The acquisition adds to Seng Fong’s existing operations in Southeast Asia as the group positions itself for broader international growth and a more diversified natural rubber supply chain.
