Hong Seng to set up its own feedstocks tank farm facilities
KUALA LUMPUR: Bursa Malaysia Main Market-listed Hong Seng Consolidated Bhd (Hong Seng) has incorporated a wholly-owned subsidiary known as HS Petchem Logistics Sdn Bhd (HS Petchem) to venture 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.
Thus, Hong Seng through HS Petchem will be delving into the starting point of the supply chain in nitrile glove production and logistic sectors to complement its existing businesses while at the same time, providing port storage for feedstocks and related integrated logistics services such as trucking delivery of feedstocks to various customers.
Hong Seng’s executive chairman and HS Petchem’s director, Datuk Teoh Hai Hin said: “Although new to the industry, Hong Seng Group intends to stay and grow itself to be 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 se ing 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 also recently revealed that the group 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 through its acquisition of Pantasniaga Sdn Bhd in its efforts to support the nation in the fight against the waves of pandemic.