KUALA LUMPUR: Seng Fong Holdings Bhd
has acquired 51% equity interest in Rainbow Rubber Buying Center Ltd (RRBC), based in Ghana, for GHS280,500 (about RM100,500) as it expands its global reach to capture greater market share.
In a statement, the group said the acquisition provides a secure, alternative source of raw material and reduces its dependence on any single region.
It noted that the World Meteorological Organization has reported a strong El Niño event intensifying into early 2027, which forecasters say raises the risk of weather-related disruption across Southeast Asia's rubber-producing regions.
Raw material costs are also expected to benefit from the comparatively lower rubber prices in Africa. With this expanded footprint, the group expects production output to increase by about 40,000 tonnes in the first year, with further gradual growth in the years that follow.
"We remain focused on operating efficiently, and this acquisition adds a new growth lever on top of that, giving us a secure source of raw material outside South East Asia and positioning us to scale production and capture greater market share," said executive director Jimmy Er Tzer Nam.
