16
INDUSTRY AND TRADE
The steel rolling industry had a satisfactory year. Production of reinforced bars and rods remained steady, despite limited supplies of raw materials, rising labour costs and keen competition from neighbouring-country suppliers. With the more intensive building programme envisaged by the government and private sector, this industry should continue to prosper.
The aircraft engineering industry, maintaining its very high reputation, provided maintenance and repair facilities for most airlines operating in the Asian region.
The manufacture of machinery, machine tools and parts is developing, with Hong Kong-made machine tools now being exported worldwide. Of particular importance are blow moulding and injection moulding machines of up to 80 oz capacity for the plastics industry, along with power presses, lathes and printing presses.
Industrial Investment Promotion
The Hong Kong Government welcomes foreign investment in local manufactur- ing industry and the Commerce and Industry Department works closely with the Hong Kong Trade Development Council to increase the level of foreign participation by active promotional work. The main joint effort for the year concerned a mission of Hong Kong industrialists and officials which visited Sweden in April to explain the advantages of setting up manufacturing facilities in Hong Kong. This was followed up by an inward mission of Swedish industrialists to Hong Kong in November to examine local investment possibilities.
At the end of 1972, there were 250 factories in Hong Kong either fully or partly owned by foreign interests. These establishments employed a total labour force of about 73,300 or 13 per cent of total employment in Hong Kong's manufacturing industry. The total investment involved was in the region of $1,200 million. The main sources of foreign investment continued to be the United States, Japan, the United Kingdom, Australia, Switzerland and West Germany, with the industries mostly involved being textiles and electronics.
Industrial Land
IL
The demand for industrial land continues to grow, and a large number of sites were sold in Wong Chuk Hang, Kwai Chung and Castle Peak (known locally as Tuen Mun) in consequence. Prices obtained exceeded the upset prices proving that manufacturers were not unwilling to move into outlying areas, such as Castle Peak. This trend augurs well for the future industrial development of that area.
A significant number of flatted industrial buildings were completed in 1972. Coupled with the equally significant number completed towards the end of 1971, they provided a welcome addition to available factory space and also contributed to the stabilisation of rents.
The construction of the first berth of the container terminal at Kwai Chung was completed, while two other berths are expected to be operational by April 1973.