HONGSENG (0041) HONG SENG CONSOLIDATED BERHAD's subsidiary Hong Seng Industries Sdn Bhd will invest RM3 billion in Kedah Rubber City (KRC) to build the world's largest glove factory starting next year
PUTRAJAYA: HONGSENG (0041) HONG SENG CONSOLIDATED BERHAD's subsidiary Hong Seng Industries Sdn Bhd will invest RM3 billion in Kedah Rubber City (KRC) to build the world's largest glove factory starting next year, said Hong Seng Group managing director Datuk Seri Teoh Hai Hin.
At a press conference after the symbolic groundbreaking ceremony for the nitrile butadiene rubber (NBL) manufacturing plant construction project here today, Teoh said the plant was expected to attract additional investment of RM5 billion through the support industry and the nitrile rubber industry value chain.
He said the factory is expected to create more than 1,600 jobs in various fields of expertise, especially for residents around KRC, namely in Padang Terap, Kedah.
"This will be a catalyst for economic recovery for those affected by the COVID-19 pandemic," he said.
He said the plant would be built next year and was expected to be completed in 2024 with a full production capacity of 960 kilotonnes of gloves a year.
"Our company will use advanced technology and comply with international quality standards to meet the growing demand for gloves," he said.
Hong Seng Industries received an offer letter to re-lease 102.6 acres of industrial land in KRC on June 25 for a period of 60 years for the construction of the NBL manufacturing plant.
Meanwhile, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said at today's ceremony that Hong Seng Group was the first company to invest in KRC and welcomed the company's move to build a factory in KRC.
He said the project was expected to attract investors from within and outside the country based on its long-term investment potential as well as benefit the local economy.
KRC, which has now achieved 85 per cent construction developed on a land area of almost 505.86 hectares, is one of the national projects under the Northern Corridor Economic Region (NCER) Strategic Development Plan 2021-2025 (SDP). - Bernama