Newsletter: Hong Kong’s industrial intelligent transformation has created a new path

　　China News Service, Hong Kong, January 29th: Title: Hong Kong’s industrial intelligent transformation has created a new path

　　China News Service reporter Liu Dawei

　　Hong Kong, which many people think of as an international financial center, does not have a weak manufacturing base. According to statistics, the industrial production index of Hong Kong's overall manufacturing industry increased by 4.4% year-on-year in the third quarter of 2023. In recent years, the Hong Kong SAR government has proposed a new type of industrial transformation, subsidizing companies that have newly established production facilities in Hong Kong, and promoting the development of these companies in the direction of automation and intelligence.

The picture shows Hong Kong workers manufacturing products. Photo by China News Service reporter Liu Dawei

　　As a partner of the SAR government in promoting new industrialization, the Hong Kong Productivity Council (HKPC) is also constantly assisting enterprises to upgrade and transform their business processes to improve efficiency and returns. The organization recently held a media delegation "Hong Kong Has Industry!" to help gain an in-depth understanding of the transformation and upgrading of Hong Kong's industry.

　　Siu Wing Steel Co., Ltd.'s factory in Tuen Mun is the only large-scale steel rolling mill in Hong Kong. This steel company was founded in 1950. It started with ship-breaking operations. Now its main business is the production and sales of rolled steel and rebar. 90% of its products are supplied to the Hong Kong market, and the steel it produces accounts for 20% to 25% of Hong Kong's construction industry.

　　"Hong Kong's labor costs are high, so we must upgrade through intelligence. There is no other way." said Pang Xinyi, managing director of Shaorong Steel. However, for a long time, the high production cost of traditional steel modification technology and the lack of R&D expertise have been two pain points faced by the Hong Kong steel industry. As a result, Shaorong Steel has been unable to carry out relevant technical research work.

The picture shows the production line of Hong Kong Siu Wing Steel Works. Photo by China News Service reporter Liu Dawei

　　Pang Xinyi gave an example. With the vigorous development of the Guangdong-Hong Kong-Macao Greater Bay Area, companies are interested in entering the Greater Bay Area market. It’s just that the steel standards in the two places are different, and there are differences in cooling technology and hardness requirements. To comply with mainland standards, the traditional approach is to add special metals to raw materials. The resulting high costs discourage Shaorong Steel.

　　To this end, the Productivity Bureau signed an agreement with Shaorong Steel in April last year to research and develop a thermomechanical treatment technology. This method does not require the addition of expensive special metals, reduces product costs, and improves competitiveness, further driving technological progress in Hong Kong's steel industry.

　　In the next step, Shaorong Iron and Steel will upgrade and transform again, this time towards a green transformation. Pang Xinyi revealed that the company will focus on setting up Hong Kong's first electric arc furnace to recycle local scrap steel and resmelt it to reduce carbon emissions. "Hong Kong's scrap iron recycling volume reaches 800,000 to 1 million tons per month, so we are absolutely qualified to recast and recycle scrap iron locally to supply the markets in Hong Kong and the Greater Bay Area." Pang Xinyi said.

　　Facts have proved that Hong Kong not only has industries, but in recent years, with the vigorous promotion of the Productivity Bureau and other organizations, traditional industries have been connected to new circuits and have gained a new look and image.

　　So far, the HKPC has provided 50 customers with 67 smart production lines in Hong Kong, 11 of which have been completed and put into use. The HKPC is currently discussing cooperation plans with 20 different companies and hopes to increase the number of cooperative companies to more than 100 in the next five years.

The picture shows workers at PDSTE, a Hong Kong electronics manufacturing service provider, processing electronic circuit boards. Photo by China News Service reporter Liu Dawei

　　PDSTE, a Hong Kong electronics manufacturing service provider, focuses on "private customization" for customers and provides a full range of services from design to marketing of high-end electronic products. Tang Yongshi, the company’s founder and marketing director, said that the company’s pain points in the past were limited production capacity and space. The existing production process also required a certain amount of manual operation and failed to conduct real-time data collection and monitoring, which affected efficiency.

　　Currently, PDSTE has applied for the SAR government's "New Industrialization Funding Program" and plans to cooperate with the Productivity Bureau to build a new intelligent production line to promote upgrading and transformation.

　　Deng Yongshi told reporters that the new intelligent production line can predict and analyze equipment maintenance dates and control maintenance time and costs. Real-time monitoring can also optimize machine operating status and reduce unexpected downtime. It is expected that after the production line is completed, the efficiency can be increased by 30%. ?

　　"High-end, intelligent and green are the indispensable development directions for Hong Kong's new industrialization." HKPC President Bi Jianwen said that in the future, HKPC will continue to assist the transformation and upgrading of traditional industries and tell Hong Kong's industrial story well. (over)