KUALA LUMPUR—Malaysian group Hong Seng Consolidated Bhd. has accepted a letter of intent from trading company Mitsui & Co. (Malaysia) for the expansion of its nitrile butadiene latex business in Malaysia.
Under the deal, the two sides will form a strategic partnership to advance Hong Seng's ongoing NBL project at Kedah Rubber City, Penang, and its associated integrated logistics services.
Hong Seng announced in 2021 that it was planning to construct and operate an NBL plant as well as a tank farm for the feedstock storage and supply of butadiene and acrylonitrile petrochemicals at Keda Rubber City.
Spanning over 102.6 acres, the site will have an NBL plant—with the capacity to produce 960,000 metric tons per year—and will include a glove making factory, Hong Seng said at the time.
In a Bursa Malaysia filing Feb. 7, Hong Seng said Mitsui intended to provide "a one-stop supply chain management" for feedstock and raw materials of the NBL plant.
Furthermore, it said, Mitsui intends to finance the tank farm established by Hong Seng, and to support for "not only raw materials supply but other business potentials for the project."
According to its website, Hong Seng, through its wholly owned subsidiary, Hong Seng Gloves Sdn. Bhd., is currently setting up its first gloves manufacturing plant in Sungai Petani, Kedah.
The commissioning of the plant, with six production lines, was scheduled for the final quarter of 2021.
Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].