ENG-1974 — Page 32

INDUSTRY AND TRADE

11

Steel rolling, which has always been a strong support industry of the building industry, continued to consolidate its position in the local market. It modernised its equipment even though it suffered some setback because of the decline in the private sector of the building construction industry during the year.

Development in the manufacture of machinery, machine tools and parts continued to contribute to Hong Kong's export earnings. Major items produced include blow moulding, injection moulding and extrusion machines of up to 80 oz capacity for the plastics industry, power presses, lathes, shapers, drill presses, polishing machines, printing presses and textile knitting and warping machines.

By the end of the year the construction of a large polystyrene plant and out- board marine engine plant were in progress and both were expected to be in production in 1975. In addition the government was considering firm proposals put forward by two competing consortia for the construction of an oil refinery and petrochemical complex and was in discussion with a number of other companies contemplating the establishment of large plants in capital intensive and relatively heavy industries.

Industrial Land

Demand for industrial land slackened off compared with previous years and this was reflected in reduced prices for land sold during the year. There were several reasons for this, chiefly the slowing down of industrial activity generally and the tight financial liquidity position which prevailed in Hong Kong for most of the year. Probably for the same reasons, the development of some industrial sites which had been sold at Tuen Mun over the past two years did not proceed with the customary speed. Means of increasing the pace of industrial development at Tuen Mun were being examined.

Consideration continued to be given to the granting of some 645 acres of land for the establishment of a large oil refinery and petrochemical plant. Considerable investigation was carried out of potential sites and a final decision on the project was expected within a few months.

Further use was made of the modified policy introduced last year whereby the sale of land is permitted on special terms to accommodate land and capital intensive industries which provide new and higher technology. Under this policy, an extension was granted to the Tsing Yi Island site of the US based manufacturer of outboard marine engines, the first company to obtain a site under the modified policy last year. Another site, of 10 acres, also on Tsing Yi, was granted for the establishment of a polystyrene plant by a large American chemicals manufacturer. A number of possible grants of land under the modified policy were under consideration at the end of the year. Among the projects concerned were shipbuilding and ship-repairing, shipping container manufacture and repair, the construction of large fibre-glass fishing vessels, the manufacture of polyester fibre and filament and several medium heavy engineering plants. It was anticipated that most applications under the modified policy would be met by allocating land on Tsing Yi, which was becoming increasingly attractive as a site for the establishment of land intensive industries following the opening of a bridge linking the island with the mainland in March.