ENG-1973 — Page 44

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INDUSTRY AND TRADE

The rate of growth of the plastics industry has levelled off principally on account of difficulties in securing adequate supplies of raw materials. At the end of 1973 efforts were continuing by the private sector and at official levels to improve the situation, but the oil crisis caused even greater uncertainties. Despite this problem, the industry's contribution to exports was still highly significant in 1973-overseas sales were worth $2,034 million, representing 10.6 per cent of total domestic exports. The 3,256 manu- facturing concerns maintain a work force of 70,666 and the plastics industry remains the second largest employer of labour. Hong Kong, by improving product quality and design, has taken over from Japan as the world's leading exporter of plastic novelties, dolls and toys. Other major items produced by the industry are artificial flowers and foliage, plastic decorative articles and fibre-glass reinforced plastic furniture.

The wig industry continued to decline in 1973, because of a further contraction in demand in overseas markets. The number of factories dropped from 194 in 1972, to 130, and the number of workers employed fell from 9,433 to 3,382 at the end of 1973. Exports of hair products in 1973 were valued at $110 million, a decrease of 50 per cent.

Other light industries of significance are footwear, metal products and travel goods. Also watches and clocks in which, with other precision-engineering industries (including optical instruments), a marked improvement in both quality and output has taken place.

Heavy and Service Industries

Hong Kong's heavy industry has responded well to the need for improved port facilities, servicing and accommodation. The development of the container terminals at Kwai Chung has enhanced Hong Kong's position as one of the leading shipping centres in Asia. Further, with the rapidly increasing significance of containerisation, Hong Kong has also ventured into the production of aluminium and aluminium-steel containers which, at present, are mainly exported to the United States.

The merging of the two major dockyards in 1972 resulted in the better utilisa- tion of equipment and manpower and improved services to customers, helping to ensure that Hong Kong will remain a significant ship-repair centre in Asia.

The aircraft engineering industry, maintaining its international reputation of skilled workmanship, provided maintenance and repair facilities for most airlines. operating in Asia. Many types of aircraft can be completely overhauled locally-this applies to air frames as well as engines.

Despite limited supplies of raw materials, rising labour costs and keen competition from neighbouring countries, the steel rolling industry maintained a satisfactory output. Annual production capacity stands at about 200,000 tons.

The manufacture of machinery, machine tools and parts continued to develop. Of particular importance are blow moulding, injection moulding and extrusion mould- ing machines of up to 80 oz capacity for the plastics industry, along with power presses,