ENG-1974 — Page 31

10

INDUSTRY AND TRADE

sophisticated product lines. The electronics industry, which overtook plastics as the second largest export earner in 1973, maintained a sustained growth despite the soft conditions in some overseas markets. While some factories were forced to reduce production or to cease operation altogether, others needed to increase their produc- tion, factory space and workforce. The industry, comprising 317 factories employing 52,098 workers, produced a wide range of hardware, including custom-made computer memory systems, transistors, integrated circuits and high grade semi-conductors, as well as consumer items such as desk and pocket calculators, transistor radios, tape recorders, tuners, television sets and television antennae. The industry contributed $2,989 million to Hong Kong's domestic exports, or a 26 per cent increase over 1973 in export value.

The plastics industry experienced a difficult year; it was confronted with escalating prices and uncertainty in obtaining raw materials in the earlier months and falling orders in the middle of the year. In March the Commerce and Industry Department assisted the industry by implementing a quota scheme under which importers of plastic materials made available directly a substantial quantity of the materials to 900 small factories. Despite the adverse situation the industry managed to achieve a 2.7 per cent growth in exports, which were valued at $2,088 million in 1974. However, the size of the industry contracted slightly from 3,256 firms with a workforce of 70,666 in 1973, to 2,985 firms employing 55,699 workers. Toys and dolls remained the most important export items of the industry. Other major items produced include artificial flowers and foliage, plastic household articles and fibre-glass reinforced plastic furniture.

=

Other light industries of significance are travel goods, metal products and food manufactures. The watch and clock industry and other precision-engineering indus- tries (including optical instruments) have continued to make remarkable improvement in terms of both quality and output.

Heavy and Service Industries

Hong Kong's heavy industry has continued to play an important role in the economy and has kept up with the changing industrial infrastructure and port facilities. In step with the rapid development in containerisation in world shipping, Hong Kong has not only, with the container terminal at Kwai Chung, reaffirmed its position as one of the leading shipping centres in Asia, but has also founded a new industry in the manufacture of aluminium and steel containers for export.

The merging of the two major dockyards in 1972 resulted in the better utilisation of equipment and manpower and improved services to customers, helping to ensure that Hong Kong will remain a significant ship-repair centre in Asia. In addition, several companies have plans to establish new shipbuilding and repair yards.

The aircraft engineering industry, maintaining its international reputation for 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 to engines.