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WEDNESDAY, JANUARY 16, 1980

LAND GRANTED FOR CONSTRUCTION OF CEMENT PLANT

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TREATY DOCUMENTS FOR THE GRANT OF A SITE ON WHICH A CEMENT PLANT IS TO BE BUILT AT SIU LANG SHUI, NEAR TAP SHEX KOK IN TUEN MUN, WERE SIGNED TODAY (WEDNESDAY).

MR AUGUSTINE CHUI KAM, DEPUTY SECRETARY FOR THE NEW TERRITORIES, SIGNED FOR THE GOVERNMENT WHILE MR LI KA-SHING, CHAIRMAN OF THE BOARD OF DIRECTORS OF CHINA CEMENT COMPANY (HONG KONG) LIMITED, SIGNED FOR THE COMPANY, WHICH WILL BUILD AND OPERATE THE PLANT.

CHINA CEMENT COMPANY (HONG KONG) LIMITED IS A JOINT VENTURE BETWEEN CHEUNG KONG (HOLDINGS) LIMITED AND KAISER CEMENT CORPORATION OF CALIFORNIA.

THE SITE, NEXT TO THAT ON WHICH THE KOWLOON ELECTRICITY SUPPLY COMPANY'S POWER STATION IS BEING CONSTRUCTED, HAS A TOTAL AREA OF 15 HECTARES AND INCLUDES UNFORMED LAND AND SEABED. IT IS BEING GRANTED BY PRIVATE TREATY.

THE PLANT WILL BE MODERN, SOPHISTICATED AND FULLY INTEGRATED, AND WILL BE CAPABLE OF EXPANSION. IT WILL HAVE AN ANNUAL PRODUCTION CAPACITY OF 1.4 MILLION METRIC TONS WITH A WORKFORCE OF 300, MOST OF WHOM WILL BE SKILLED, THE GOVERNMENT WILL APPLY CAREFUL MONITORING AND CONTROL TECHNIQUES TO ENSURE THAT THERE IS NO UNDUE IMPACT ON THE ENVIRONMENT.

UNDER THE AGREEMENT WITH THE COMPANY, THE HIGH QUALITY PORTLAND AND OTHER SPECIALISED CEMENTS PRODUCED BY THE PLANT WILL BE AVAILABLE FOR USE IN HONG KONG. THIS WILL BE BENEFICIAL IN TIMES OF SHORT SUPPLY OR HIGH DEMAND.

ANOTHER BENEFIT WILL BE THAT THE PLANT WILL USE AS A BASIC RAW MATERIAL FUEL ASH PRODUCED BY THE POWER STATION.

CONSTRUCTION WORK ON THE SITE IS STARTING SHORTLY AND THE PLANT IS DUE TO BE READY BY 1982. ESTIMATED COST OF THE PROJECT IS $1 BILLION.

WELCOMING THE INVESTMENT, A SPOKESMAN FOR THE NEW TERRITORIES ADMINISTRATION SAID IT CONSTITUTED A FURTHER TANGIBLE SIGN OF CONFIDENCE IN HONG KONG'S FUTURE. HE SAID ESTABLISHMENT OF THE PLANT ALSO ENHANCED OUR IMAGE AS A MANUFACTURING BASE IN THE REGION.

+ IT IS PARTICULARLY WELCOME THAT THE PLANT WILL BE BUILT CLOSE TO THE POWER STATION AS THIS WILL DO A GREAT DEAL TO REDUCE THE PROBLEM OF DISPOSAL OF ASH PRODUCED BY THE STATION, HE SAID.

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