Hong Seng inks pre-contract latex deal
09 Feb 2021
KUALA LUMPUR: Hong Seng Consolidated Bhd’s unit Hong Seng Industries Sdn Bhd has today signed a pre-contract agreement with PH2 Global Ltd (PH2) for the latter to conduct a feasibility study for a nitrile butadiene latex (NBL) manufacturing plant project in Kedah Rubber City.
Hong Seng executive chairman Datuk Teoh Hai Hin said the NBL project will create synergy in the group’s business by complementing and reducing the operational cost for its glove manufacturing arm, Hong Seng Gloves through the internal supply of NBL.
“Therefore, we have engaged PH2 to conduct a feasibility study for the NBL project for the purpose of evaluating its investment benefits, coupled with the intention to support the nation’s glove industry’s rapid growth and expansion,” he said in a statement today.
On December 28 2020, Hong Seng had accepted a letter issued by Northern Corridor Implementation Authority to secure a federal land in Kedah Rubber City measuring about 105 acres (42.5ha) at an offer price of RM45.74 million.
PH2 is focusing on providing technology, research and development, and commercial services for nitrile latex and nitrile gloves.
PH2’s key management members have been providing consultations in the field of nitrile latex related business for more than 13 years since 2008 prior to its incorporation in year 2012.
The team had collaborated and completed two projects to set up NBL manufacturing plant in China and its product technology for thin wall gloves are currently used by global major glove dippers.