Hong Seng identifies Negeri Sembilan as suitable location for Malaysia Green Valley - MIDA | Malaysian Investment Development Authority
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Hong Seng identifies Negeri Sembilan as suitable location for Malaysia Green Valley

Hong Seng identifies Negeri Sembilan as suitable location for Malaysia Green Valley

15 Jun 2022

Hong Seng Consolidated Bhd on Wednesday announced that it has issued a letter of intent (LoI) to Invest NS to explore the possibilities towards forming a strategic partnership for the development of five parcels of leasehold land in Seremban, Negeri Sembilan measuring approximately 284.75 acres into Malaysia Green Valley (MGV).

Invest NS is a solution centre set up by the Negeri Sembilan state government to assist investors in setting up new operations and expanding their existing operations in the state.

In a statement, Hong Seng said MGV is envisioned to be a green industrial park designed for research and development, and manufacture cost effective and sustainable renewable energy products and the related supply chain businesses.

“MGV will be a centre of excellence in building a green value chain in Southeast Asia to strengthen the clean energy value chain across the upstream, midstream and downstream segments in Southeast Asia which will enable and spur the local small- and medium-sized enterprises to be more competitive,” it said.

Hong Seng on June 10 entered into a memorandum of understanding (MoU) with EoCell Inc to develop a regional manufacturing hub in Malaysia to manufacture batteries for electric vehicles (EVs) and progress to energy storage solutions which will eventually be supplied to EV manufacturers, assemblers and users in the Southeast Asian region.

Pursuant to the MoU, Hong Seng is expected to identify and propose suitable locations for the purpose of the project’s site.

As such, the group has identified Negeri Sembilan as a suitable location for the purpose of the development of MGV and the project.

Hong Seng noted the LoI is intended for the parties to explore the possibilities of strategic partnerships which could be in the form of joint venture development, lease or outright sale of the lands.

“Subsequently, the parties will start to negotiate in good faith the terms and conditions of a definitive agreement for the strategic partnerships in relation to the development of MGV,” added Hong Seng.

Hong Seng shares fell four sen or 2.37% to close at RM1.65, valuing the group at RM4.21 billion.

Source: The Edge Markets