With environmental laws more strictly enforced in the Chinese mainland's Pearl River Delta region (PRD), Hong Kong manufacturers are looking at ways to upgrade their technology. An environmental industry mission to Japan in June gave 40 leading industry members a first-hand look at the latest green technology available on the market.

	Daniel Cheng (centre), Deputy Chairman of the Federation of Hong Kong Industries, tours the Coop Kobe Rokko Island Food Processing Factory, Rokko Island West, during an environmental industry mission to Japan

"Japan currently is one of the world leaders in environmental technology," said Daniel Cheng, Deputy Chairman of the Federation of Hong Kong Industries and mission leader of the Green Manufacturing and Clean Production segment of the Japan mission. "Japan has tackled industrial pollution by using green technology developed over the years."

Noting that about 80,000 factories based in the PRD are either wholly or jointly owned by Hong Kong businesses, Mr Cheng said that Hong Kong manufacturers have a responsibility to be more environmentally responsible.

The six-day mission, organised by the Hong Kong Trade Development Council (HKTDC), visited various locations that showcased Japan's environmental technology. Representatives from major firms, including Towngas and CLP Power, as well as Hong Kong Government representatives from the Trade and Industry and Environmental Protection departments, visited two industrial parks in Kawasaki and Kobe. The 200-hectare eco-developments feature the latest recycling technology for plastic, food, water, home appliances and office equipment, allowing industries that generate waste to supply to recyclers.

"The eco-towns gave us ideas on how manufacturing can be sustainable. They are models for how to run industries that address the problem of waste while providing new sources of energy," Mr Cheng said.

Adding value

The mission also coincided with an environmental technology exhibition in Tokyo. Many of the exhibitors were small and medium-size businesses (SMEs) keen to take advantage of the new mainland environmental rules to market their technology. "China's manufacturing in many ways mirrors Japan more than 30 years ago," said Hori Akinori, Chairman and CEO of White Hole Environment Technology, which took part in the Japan mission. He said efforts at the time to make manufacturing more efficient led to the environmental improvements.

White Hole Environment Technology, which helps market Japan's green technology abroad, said partnering with Hong Kong businesses is key to breaking into the mainland market. "Many Japanese SMEs do not have the know-how to market to China, and teaming up with Hong Kong is a win-win situation for both sides."

Hong Kong manufacturers maintain substantial investments in the PRD region in six key sectors: electronics, garments and textiles, plastics injection moulding, metal plating and processing, printing and chemicals. Together, they will require green production technology and services totalling US$628 million by 2018. To help Hong Kong industries across the border, the Hong Kong SAR government has earmarked US$11.9 million for a five-year scheme to promote cleaner production technology and practices by Hong Kong-owned factories in the PRD.

"Trading these days is not so simple. You need added value, and investing in environmental technology gives you the edge as well as a license to operate," Mr Cheng said. It was a completely different scene when the deputy chief of the Federation of Hong Kong Industries first entered the environmental industry more than a decade ago.

Sustainable production

While the green business in Hong Kong is still in its early stages, it is here to stay, according to Mr Cheng. That's why the Federation of Industries launched the One-One-One programme three years ago, an initiative created to help manufacturers move towards greener production. The One Factory-One Year-One Environmental Project, which has attracted 200 companies, aims to change the mindset of Hong Kong manufacturers, to convince them that upgrading to green technology is a long-term investment.

Mr Cheng said he has seen a "great leap" in industries going the extra step towards green production, noting that companies now consider upgrading to more environmentally friendly technology as part of their operating expense. He believes that companies will eventually be unable to compete without investing in green technology and management.

An international trade fair on environmental protection will be held later this year. Organised by the HKTDC and Messe Frankfurt, Eco Expo Asia, 28-31 October, at AsiaWorld-Expo, will showcase products and technology that promote air quality, energy efficiency, waste recycling and eco-friendly products. 

Mr Cheng believes the HKTDC environmental trade mission achieved what it set out to do. "Japan, which has a holistic approach to environmental technology, is at least 10 years ahead of us," he said. "It was an eye-opener for our delegates. Most of them came away with a fresh perspective on the environmental possibilities for their trade."