IMPERIAL CHEMICAL INDUSTRIES LIMITED
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Slurry Explosives Project Hong Kong
HK Government has decided that a domestic slurry explosives plant will be built and operated on Stonecutters island.
HK Government will adjudicate between ICI and Dupont mainly on basis of competitive bidding for lease of land.
We are concerned that we should be awarded the tender not only because of our established business in HK but because of the adverse effect on our business in accessories and explosives in S.E. Asia if Dupont is allowed to establish a base in Hong Kong. ICI has major business in this area and has long term plans for its development.
The main advantages to Hong Kong and UK of selecting ICI for the project are :-
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ICI Group is largest manufacturer of explosives in the world. The experience and technology of this Group would fully support the HK project.
Exports of blasting accessories to S.E. Asia from UK to value of about £3.6m/year would not be placed at risk.
The market for blasting accessories in Hong Kong is worth about £425,000 FOB of which ICI's share is about £100,000. Price competition from Japan has been severe in recent years and Dupont entered the market in 1977. The award of the tender to ICI would strengthen ability to obtain a larger share of this market through increased UK exports.
ICI's dominant position in explosives in S.E. Asia which has been won in face of strong competition from Japan and USA could be maintained with consequent benefits to UK exports.
If Dupont established a base in Hong Kong their ability to sell in the whole area would be strengthened with likely adverse effects on the competitive strength of ICI - a British based company - and UK exports.
PH Brodie
19 April 78
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