Hong Seng halts nitrile latex, gloves project in Malaysia
Malaysian group was in tie-up with Mitsui for “a one-stop supply chain management” project
Kuala Lumpur – Malaysian group Hong Seng Consolidated Bhd has suspended a project to build and operate a nitrile-rubber latex (NBL) plant in Malaysia, due mainly to market weakness.
Unveiled in 2021, the 960 kilotonnes per annum (ktpa) nitrile latex project (ERJ report) included provisions to establish a gloves-making factory in Kedah Rubber City (KRC), Malaysia.
In February 2022, Hong Seng signed a letter of intent with Mitsui & Co. (Malaysia) concerning a 'one-stop' system to manage raw materials supply to the latex plant.
In a 12 Sept Bursa announcement, however, Hong Seng said it had decided to suspend the KRC NBL project due to factors including project and funding requirements.
Furthermore, it cited “the current weak market sentiment regarding the glove industry, capital raising needs and inflows of private and foreign investments,”
The Malaysian group said it will now renegotiate agreement terms relating to the planned project and explore alternative utilisation of the land.