KUALA LUMPUR: Hong Seng Consolidated Bhd has accepted a letter of intent from Mitsui & Co (Malaysia) Sdn Bhd to collaborate on Hong Seng's nitril butadiene latex business at Kedah Rubber City and integrated logistics services business at Penang.

       In a bourse filing, Hong Seng said the LOI will create a mutually exclusive relationship between the parties in order to facilitate direct negotiations for the strategic partnerships.

       "The Strategic Partnerships will 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," it added.

       On 25 June 2021, Hong Seng's wholly owned subsidiary Hong Seng Industries Sdn Bhd had entered into a sublease agreement with Northern Corridor Implementation Authority for a sublease of an industrial land located at Kedah Rubber City where it plans to build and operate a nitrile butadiene latex manufacturing plant.

       On Nov 1, 2021, another wholly owned subsidiary HS Petchem Sdn Bhd accepted the letter of offer issued by Penang Port Sdn Bhd for the sub-lease of a part of an industrial land located at Prai Bulk Cargo Terminal, Pulau Pinang, to construct a tank farm for the feedstock storage and supply of butadiene and acrylonitrile petrochemicals as well as the provisioning of logistics services for the delivery of the said feedstock.