KUALA LUMPUR: Hong Seng Consolidated Bhd's (HSC) wholly-owned subsidiary Hong Seng Industries Sdn Bhd (HSI) inked a sublease agreement with Northern Corridor Implementation Authority (NCIA) for the sublease of a 102.6 acres industrial land located at Kedah Rubber City (KRC) for RM44.69 million for 60 years.
The sublease is for setting up a nitrile butadiene latex (NBL) manufacturing plant in KRC with an option to renew for another 30 years.
The company has earmarked a total investment of RM1.5 billion for 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.
The business expansion will also include the expansion of its current gloves manufacturing business.
Commenting on the company's investment in KRC, HSC group managing director Datuk Teoh Hai Hin said the investment marked an official foray of the company into the NBL business, which complement its existing gloves manufacturing business.
He said the company is in the midst of setting up its first six units of nitrile butadiene rubber double former glove dipping production lines in Sungai Petani, Kedah.
HSC's investment is part of the total RM16 billion investment generated in the Northern Corridor Economic Region (NCER).
This is in line with the government's consistent efforts to increase investors' confidence in the country's economic fundamentals and provide opportunities to the rakyat.
The NCER is said to be creating a total of 19,652 new jobs.
A filing in Bursa Malaysia showed HSI is desirous of building and operating an NBL manufacturing plant with a planned capacity of 480 kilo-tonnes per annum (KTPA), with 120 KTPA each phase, in KRC.
KRC is part of the Northern Corridor Economic Region development, which has been identified under the Ninth Malaysia Plan to promote balanced and equitable national economic growth.
Today's virtual event was witnessed by prime minister Tan Sri Muhyiddin Mohd Yassin and Kedah chief minister Muhammad Sanusi Md Nor.
Also in attendance was the minister of finance Tengku Datuk Seri Zafrul Tengku Abdul Aziz, minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed and NCIA chief executive Datuk Seri Jebasingam Issace John.