Sunday 14 Jul 2024
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KUALA LUMPUR (Feb 7): Hong Seng Consolidated Bhd said Monday (Feb 7) it has accepted the letter of intent (LoI) from Japanese global trading and investment firm Mitsui & Co Ltd’s subsidiary Mitsui & Co (Malaysia) Sdn Bhd to form a strategic partnership for Hong Seng’s nitrile butadiene latex (NBL) business at Kedah Rubber City and integrated logistics services business at Penang.

Hong Seng said in a bourse filing the LoI expresses the intentions of both parties to engage in exclusive negotiations to form strategic partnerships in relation to an NBL plant and tank farm.

It said Mitsui intends to provide a one-stop supply chain management for feedstock and raw materials of the NBL plant.

Hong Seng wholly-owned subsidiary Hong Seng Industries Sdn Bhd had on June 25, 2021 entered into a sublease agreement with Northern Corridor Implementation Authority for a sublease of an industrial land located at Kedah Rubber City where the group want to build and operate a NBL manufacturing plant.

In November 2021, HS Petchem Sdn Bhd had accepted the letter of offer issued by Penang Port Sdn Bhd for sub-lease of a part of an industrial land located at Prai Bulk Cargo Terminal, Pulau Pinang.

The group is desirous of constructing a tank farm for the feedstock storage and supply of butadiene and acrylonitrile petrochemicals as well as provisioning of logistics services for the delivery of the said feedstock.

“The LoI will create a mutually exclusive relationship between the parties in order to facilitate direct negotiations for the strategic partnerships. The strategic partnerships further strengthen Mitsui’s market in Malaysia and Hong Seng to leverage on the expertise and global network of Mitsui in the chemical supply industry,” said Hong Seng.

Hong Seng, which was among the top gainers this morning, rose 26 sen or 9.39% to RM3.03 on Monday's noon break.

Year to date, the counter has climbed 12.2%.

Edited ByKathy Fong
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