XN000022-1987-11-11 — Page 43

41

WEDNESDAY, NOVEMBER 11, 1987

HE ADDED THAT THE POTENTIAL INVESTORS IN THE CHEMICAL PROCESS INDUSTRY WERE BOTH LOCAL AND FOREIGN, AND HE WAS CONFIDENT THAT THE INDUSTRY HAD A BRIGHT FUTURE.

"THE INDUSTRY IS NOT ONLY GROWING BIG AND FAST BUT IS ALSO FURTHER DIVERSIFYING INTO NEW AREAS ΤΟ SUPPORT HONG KONG'S MANUFACTURING INDUSTRIES.

"RAPID DEVELOPMENT OF THE ELECTRONICS INDUSTRY HAS PROVIDED MAJOR OPPORTUNITIES IN THE PROVISION OF SPECIALTY CHEMICALS AND CHEMICAL PROCESSING SERVICES, WHILE RECENT EXPANSION OF THE DYEING AND FINISHING SECTOR OF THE TEXTILE INDUSTRY HAS ALSO RAISED LOCAL DEMAND FOR HIGHER QUALITY DYESTUFFS AND TEXTILE CHEMICALS.

14

MR HOWARD POINTED OUT THAT IN ADDITION TO ITS DIVERSIFICATION, HONG KONG'S CHEMICAL PROCESS INDUSTRY WAS ALSO QUITE SMALL IN RELATIVE, LOCAL TERMS.

"AT THE END OF LAST YEAR THERE WERE 793 ESTABLISHMENTS IN THIS SECTOR AND THEY WERE EMPLOYING ABOUT 8,350 PEOPLE WHICH IS ROUGHLY ONE PER CENT OF TOTAL EMPLOYMENT IN MANUFACTURING.

—

"ITS DIRECT CONTRIBUTION TO THE GROSS DOMESTIC PRODUCT CANNOT BE TERMED SIGNIFICANT BUT IT IS MOST IMPORTANT BECAUSE OF ITS SUPPORT TO OTHER MANUFACTURING INDUSTRIES.

01

IN TRADE TERMS, MR HOWARD SAID HONG KONG WAS AN IMPORTER RATHER THAN AN EXPORTER OF CHEMICALS. IN 1986, IMPORTS OF CHEMICALS AND RELATED PRODUCTS REPRESENTED SEVEN-AND-A-HALF PER CENT OF TOTAL IMPORTS WHILE EXPORTS ONLY ACCOUNTED FOR ONE PER CENT OF TOTAL DOMESTIC EXPORTS.

"THE INDUSTRY IS DEPENDENT ON IMPORTS AND ABOUT 54 PER CENT OF ITS PRODUCTION IS RETAINED FOR LOCAL CONSUMPTION. ONLY ABOUT 15 PER CENT OF DOMESTIC DEMAND IS MET BY LOCAL PRODUCTION, HE ADDED.

די

"WITH THE EXPANSION AND SOPHISTICATION OF INDUSTRIAL ACTIVITY IN HONG KONG DURING THE LAST FIVE YEARS, THE IMPORTANCE OF THE DOMESTIC MARKET HAS GROWN TREMENDOUSLY, ESPECIALLY IN THE DEMAND FOR FINE CHEMICALS AND SPECIALTY CHEMICALS WHERE BOTH THE ELECTRONICS INDUSTRY AND THE TEXTILE INDUSTRY ARE EAGER CUSTOMERS.

"THE POPULATION, WITH ITS INCREASING EXPECTATIONS AND ASPIRATIONS, IS ALSO EXERTING DEMAND FOR THESE PRODUCTS THROUGH ITS INCREASING PURCHASES OF CONSUMER ITEMS BUCH AS SOAPS, DETERGENTS, COSMETICS, PERFUMES AND TOILET PREPARATIONS, MR HOWARD SAID.

||

/42