XN000022-1979-07-10 — Page 2

TUESDAY, JULY 10, 1979

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RECORD OVERSEAS INVESTMENT

PROJECT FOR HONG KONG *****

PLANS FOR THE BIGGEST-EVER OVERSEAS INDUSTRIAL INVESTMENT IN HONG KONG - THE BUILDING OF A $1 BILLION CEMENT PLANT – HAVE BEEN REVEALED TODAY (TUESDAY).

THE GOVERNMENT HAS AGREED IN PRINCIPLE TO GRANT A 15-HECTARE SITE AT TAP SHEK KOK, TUEN MUN, NEXT TO THE KOWLOON ELECTRICITY SUPPLY COMPANY'S FUTURE POWER STATION, FOR THE PROJECT WHICH WILL BE A JOINT VENTURE BETWEEN THE KAISER CEMENT CORPORATION OF THE U.S.A. AND VARIOUS LOCAL INTERESTS HEADED BY CHEUNG KONG (HOLDINGS) LTD.

THE CEMENT WORKS WILL EMPLOY A PRODUCTION TECHNOLOGY THAT 18_NEW_TO_HONG KONG - THE MODERN DRY METHOD WHICH WILL INVOLVE THE USE OF SOPHISTICATED EQUIPMENT AND PROCESSES.

THE NEWS HAS BEEN WELCOMED BY TRADE INDUSTRY AND CUSTOMS DEPARTMENT, WHICH INITIATED DISCUSSION OF THE PROJECT WITH KAISER, AND HAS BEEN INVOLVED IN THE NEGOTIATIONS FOR OVER A

YEAR.

+THIS MAJOR PROJECT WILL BRING MANY BENEFITS TO HONG KONG,+ MR. ROY PORTER, COMMISSIONER OF INDUSTRY SAID.

+IT WILL INTRODUCE A NEW INDUSTRY, EMPLOYING NEW TECHNOLOGY AND TECHNICAL SKILLS, BACKED BY THE MANAGERIAL AND MARKETING SKILLS OF A WORLD-RENOWNED AMERICAN MULTI-NATIONAL COMPANY,+

WHEN IN FULL OPERATION IT WILL EMPLOY ABOUT 300 STAFF MOSTLY TECHNOLOGISTS, TECHNICIANS SKILLED WORKERS AND SEMI-SKILLED OPERATORS. ONLY ABOUT ONE-FIFTH WILL BE UNSKILLED LABOUR.

THE ADJACENT POWER STATION WILL UTILISE COAL AS A PRIMARY FUEL. A PARTICULAR FEATURE OF THE CEMENT PLANT IS THAT, IN TURN, IT WILL USE A BY-PRODUCT OF THE BURNING OF COAL BY THE POWER STATION AS A RAW MATERIAL FOR CEMENT PRODUCTION.

THE ENVIRONMENTAL ASPECTS OF THE PLANT HAVE BEEN EXAMINED CAREFULLY. AND IN THE LEASE WILL BE CONDITIONS, PREPARED WITH THE ADVICE OF THE ENVIRONMENTAL PROTECTION UNIT, TO ENSURE THAT ANY POTENTIAL ADVERSE EFFECTS ON THE ENVIRONMENT ARE KEPT WITHIN REASONABLE LIMITS.

+THIS ADDITIONAL SOURCE OF CEMENT FOR OUR BUILDING INDUSTRY AND, MOREOVER, ONE WHICH LOOKS UPON HONG KONG AS ITS PRIMARY MARKET, WILL MAKE US LESS VULNERABLE TO FLUCTUATIONS IN THE SUPPLY AND PRICE OF CEMENT FROM ABROAD,+ MR. PORTER SAID,

+AN INDUSTRIAL INVESTMENT OF THIS MAGNITUDE BY A MAJOR OVERSEAS CORPORATION, AS WELL AS BY LOCAL INTERESTS, IS A TANGIBLE MARK OF CONFIDENCE IN HONG KONG'S FUTURE, AND ENHANCES ITS IMAGE AS A MANUFACTURING BASE IN THIS REGION.

+WE ARE PLEASED TO HAVE BEEN PARTIALLY INSTRUMENTAL IN THE DECISION TO BUILD THE NEW FACTORY IN HONG KONG,+ MR. PORTER ADDED.

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