KUALA LUMPUR: Hong Seng Consolidated Bhd's wholly-owned subsidiary Hong Seng Industries Sdn Bhd (HSI) has entered into an agreement with Northern Corridor Implementation Authority (NCIA) to sublease an industrial land located in the Kedah Rubber City (KRC), Padang Terap, Kedah for RM44.69 million.

       "The agreement will allow the company to lease the 503.31 hectares of industrial land in KRC for a period of 60 years, with an option to renew for a further 30 years,” Hong Seng said in a filing to Bursa Malaysia today.

       "HSI wants to build and operate a nitrile butadiene latex (NBL) manufacturing plant with a planned capacity of 480 kilo-tonnes per annum,” it said.

       Hong Seng group managing director Datuk Teoh Hai Hin said the company has earmarked a total investment of RM1.5 billion for its business expansion in KRC over the next five years from 2022 onwards.

       "It is expected to attract RM5 billion in private investments and create 2,600 new job opportunities in the northern region,” he said in a separate statement today.

       The group has recently diversified into the glove manufacturing business via Hong Seng Gloves Sdn Bhd, which is in the midst of setting up six units of nitrile butadiene rubber, double former glove dipping production lines with utilities support system in Sungai Petani, Kedah, and the group expects to commence its glove manufacturing business in the third quarter of 2021.

       Hong Seng said the sublease would be funded via a combination of internally-generated funds, bank borrowings, proceeds received from the exercise, and conversion of the convertible securities of the company or future fundraising exercises. - Bernama