ENG-1976 — Page 39

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INDUSTRY AND TRADE

The steel rolling industry meets a considerable part of the needs of the local build- ing industry and, in 1976, it benefited from the increased building activity which took place following the slack period during the 1975 recession.

The manufacture of machinery, machine tools and their parts provides useful support to other local industries as well as contributing to Hong Kong's export trade. Of particular importance are blow moulding, injection moulding and extrusion machines of up to 80 ounce capacity for the plastics industry; power presses; lathes; shapers; printing presses; and textile knitting and warping machines.

A large polystyrene plant-the first to be built in Hong Kong-was completed in 1976 and started production. It should provide valuable support to the local plastics industry.

Industrial Land

Demand for industrial land strengthened early in the year, reflecting the upsurge in industrial activity as compared with 1975. Prices remained high for industrial lots on Hong Kong Island and in the New Territories which were sold by public auction. At the same time, there was keen competition among holders of exchange entitlements -in respect of agricultural land returned to the government for redevelopment-to obtain industrial sites in the New Territories.

Industrial development in Tuen Mun received a boost early in the year when an 8 370-square-metre site was granted by private treaty, under the terms of the modified industrial land policy, to an overseas company for the building of a plant to produce heat-transfer printing paper for the textiles industry. The tempo of development in the new town was maintained throughout the year, with at least nine other factory projects taking shape.

In the autumn, a site of 12 153 square metres on Tsing Yi Island was granted for a project to manufacture machine tools. Other special industrial projects being con- sidered for possible land grants include several shipbuilding and ship-repair yards on Tsing Yi.

Work on the first stage of the Tai Po industrial estate progressed smoothly under the direction of the Hong Kong Industrial Estates Provisional Authority. The provi- sional authority was established by ordinance on April 30, 1976, and charged with the development and management of the industrial estates planned for Tai Po and Yuen Long pending the setting up of an Industrial Estates Corporation. The first sites at Tai Po should be ready for occupation in April 1977. They will be particularly suitable for capital-intensive and medium heavy industries which can only be housed in low buildings. When completed in 1978–9, the first stage of the Tai Po industrial estate will comprise 27 hectares of reclaimed land provided with roads, water supply and a sewage treatment plant.

Industrial Investment Promotion

The Co-ordinating Committee on Industrial Investment Promotion, formed in October 1975, co-ordinates the efforts of the Commerce and Industry Department,