INDUSTRY AND TRADE
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terminals at Kwai Chung has kept pace with the rapid development of containerisa- tion in world shipping and has further enhanced Hong Kong's position as one of the leading shipping centres in Asia.
The aircraft engineering industry continued to maintain its high international reputation and provide maintenance, overhaul and repair facilities for most of the airlines operating in Asia. The steel rolling industry, which supplies the local building industry, was affected by the continued lower demand in the private sector of the building industry. The steel rolling mills operated below capacity for much of the year. The manufacture of machinery, machine tools and parts continued to provide useful support to other local industries as well as contributing to Hong Kong's export earnings. Particularly important are: blow moulding, injection moulding and extrusion machines of up to 80 ounces capacity for the plastics industry; power presses; lathes; shapers; drill presses; polishing machines;-printing presses; and textile knitting and warping machines.
Proposals put forward by two consortia for the construction of an oil refinery and petro-chemical complex were put into abeyance in view of present over capacity in the industry and the uncertain world economic situation.
Industrial Land
Although there were signs of increased industrial activity during the latter half of the year, demand for industrial land continued to be relatively weak and only a limited number of sites were sold for industrial purposes during the year. But industrial development,continued at Tuen Mun, where a three-acre site was sold to an overseas company for the construction of an aluminium extrusion plant, and development of sites sold in previous years took place.
The first result of the modified industrial land policy introduced in 1973 was realised towards the end of 1975 with the completion of an outboard marine engine plant on Tsing Yi Island by a United States-based manufacturer. Another plant for the production of polystyrene, also on Tsing Yi, was under construction and expected to be in operation in 1976. A number of possible grants of land under the modified policy were under consideration at the end of the year, the projects including a steel- making plant with a modern foundry, a chemical plant, and several shipbuilding and ship-repairing/engineering projects.
In June the government announced its decision to construct the first of several industrial estates to provide specifically for heavier industries. Work has begun on the first estate near Tai Po. It will provide 187 acres of land entirely reclaimed from the sea and complete with all necessary services, including a sewage treatment plant. It will be possible to extend the area to cover 360 acres. The first stage of the estate is scheduled to be completed by 1978-9. It will provide about 60 acres with the necessary roads, water supplies and full sewage treatment. The first sites will be sold or leased in 1976 for occupation early in 1977. The estate's construction and manage- ment are the responsibility of a steering group at present, but consideration will be given to establishing a statutory corporation to own and manage this and other similar estates at a later date.