Hong Seng Consolidated Bhd will be venturing into the petrochemical business to construct and operate tank farm facilities for feedstocks storage such as butadiene (BD), acrylonitrile (AN) and liquefied natural gas (LNG).
Feedstocks such as BD and AN are the core materials for the nitrile latex production and nitrile latex is the raw material used for nitrile glove manufacturing while LNG are widely used in the logistic sector especially for shipping and heavy-duty road transport as is it a more cost-competitive and cleaner transport fuel.
Hong Seng via HS Petchem Logistics Sdn Bhd will be delving into the starting point of the supply chain in nitrile glove production and logistic sectors to complement its existing businesses while providing port storage for feedstocks and related integrated logistics services such as trucking delivery of feedstocks.
Its executive chairman Datuk Teoh Hai Hin said: “Although new to the industry, Hong Seng Group intends and grow itself to be a formidable player which offers end-to-end products and solutions relevant to the business.
“As the gloves and logistics industries are booming, the raw materials required are also in severe shortages, therefore, by setting up our own feedstocks tank farm facilities, we will be able to capture a substantial market and fill up the void in the supply chain.
“Besides venturing into the petrochemical sector, Hong Seng is also going full steam ahead in the healthcare and financial services segments to diversify our businesses in order to boost the group’s financial position,” he added.
Hong Seng recently announced that it will be procuring Covid-19 Polymerase Chain Reaction (PCR) test kits to cater to the mass screenings which need to be conducted especially in Sabah via the acquisition of Pantasniaga Sdn Bhd.