ENG-1991 — Page 110

INDUSTRY AND TRADE

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In recent years a number of large multinational chemical companies have shown interest in investing in Hong Kong. In January 1991, the Industry Department commissioned a study on the development potential of the chemical processing industry in Hong Kong, aimed at identifying the infrastructure which would be needed to enable the industry to grow. The study was completed in November.

Studies were also conducted on the plastics, textiles and clothing industries, and on the pace of industrial automation in Hong Kong. Also, in view of Hong Kong's growing importance as a regional centre, the department conducted a survey to identify the number of Asia-Pacific regional headquarters in Hong Kong.

The department provides information on available industrial support services to manufacturers through its Industrial Extension Service (IES), and encourages them to upgrade their operations by making use of these services. In 1991, a total of 308 factory visits were made by engineers of the IES, and 91 referrals were made to organisations which could help to solve the problems encountered by the companies concerned.

Another major responsibility of the Industry Department is to monitor the adequacy of Hong Kong's infrastructure, particularly the availability of land and trained manpower. Industrial land is normally sold by public auction or tender, but can also be sold on special terms, either by tender or by private treaty, to accommodate industries which are land and capital intensive, or use advanced technology, and whose presence is considered to be economically desirable. Two such industrial estates, developed and managed by the Hong Kong Industrial Estates Corporation, have been built in Tai Po and Yuen Long to accommodate manufacturing processes which employ advanced technology and which cannot be carried out efficiently in ordinary multi-storey buildings.

Additional land and accommodation was made available for industry during the year. The government put up for sale by auction or tender 10 pieces of industrial land with a total area of 43 279 square metres, and about 521 000 square metres of flatted factory space were completed by private developers. A construction contract was signed by the Hong Kong Industrial Estates Corporation in August 1991 for land formation and infrastructure for a third industrial estate at Tseung Kwan O, at a value of $507 million. The first sites for sale in this new estate should be available early in 1994.

Regarding manpower training for industry, technical education and industrial training is available in eight technical institutes and two industrial training centres run by the Vocational Training Council, and in two training centres run by the Clothing Industry Training Authority. Technological training at higher levels is provided in Hong Kong's two polytechnics and two universities. A third university, the Hong Kong University of Science and Technology, opened in October, and its courses will be particularly relevant as far as the needs of industry are concerned.

During the year, a decision was taken to establish a New Technology Training Scheme, under which financial assistance is given to employers to train, either locally or overseas, their technologists and managers in new technologies strategically important for industrial and economic development. The scheme is to be administered by the Vocational Training Council, but the Industry Department and the Hong Kong Productivity Council are also involved, and will provide a placement assistance service.

The government has released a $250 million grant and committed another $188 million as a low-interest loan to meet the initial costs of developing a technology centre in Hong Kong to encourage the growth of technology-based firms. The centre, to be called the