HONG KONG: CROWN COLONY GOES ALL-OUT TO REGAIN SHIPBREAKING LEAD AND PREPARES FOR BOOM

Record ID: 588445

  • Title: HONG KONG: CROWN COLONY GOES ALL-OUT TO REGAIN SHIPBREAKING LEAD AND PREPARES FOR BOOM
  • Date: 23rd June 1969
  • Summary: SHIPBREAKING IN PROCESS AT JUNK BAY. (NATURAL SOUND) Initials TS/V/BOB/SS Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 8th July 1969 13:00
  • Keywords:
  • Location: JUNK BAY, HONG KONG
  • Country: Hong Kong
  • Reuters ID: LVA9TYN6DM3A21UYZXCSYTM1DQJ0
  • Story Text: HONG KONG'S SHIPBREAKING INDUSTRY, WHICH LOST ITS LEAD AS THE SHIPBREAKING CENTRE OF THE FAR EAST TO TAIWAN LAST YEAR, IS GOING ALL-OUT TO REGAIN ITS POSITION AND A BOOM IN THE INDUSTRY IS NOW SAID TO BE ON THE WAY. A NEW, ENLARGED DEMAND FOR SCRAP IS STIMULATING THE INDUSTRY, AND SHIPBREAKERS THEMSELVES ARE PROMOTING WORK BY OFFERING HIGHER PRICES FOR WRECKS AND SHIPS BEING SCRAPPED.

    JUNK BAY IS THE SHIPBREAKING CENTRE OF HONG KONG, AND HERE THERE IS AMPLE EVIDENCE OF THE COMING BOOM. TEN VESSELS ARE BEING BROKEN UP AT THE MOMENT. SIX HAVE ALREADY BEEN HANDLED OS FAR THIS YEAR, AND LYING OF LANTAO ISLAND THERE ARE FOUR MORE VESSELS AWAITING SUITABLE OFFERS FROM BREAKERS.

    THERE ARE TWO FACTORS IN THE BOOM. ONE IS THE EVER-RISING PRICE OF SCRAP IRON, THE OTHER THE DETERMINATION OF THE SHIPBREAKERS THEMSELVES TO INCREASE THEIR TURNOVER BY OFFERING PRICES FOR WRECKS WHICH ARE COMPETITIVE WITH THOSE OFFERED BY TAIWAN. UNTIL RECENTLY, THE KUOMINTAG SHIPBREAKERS HAD BEEN PAYING UP TO 10 PER CENT MORE THAN THE HONG KONG BREAKERS WERE PREPARED TO OFFER. THE BREAKERS SAY THAT THEY HAVE ALWAYS HAD TO OFFER LOW PRICES BECAUSE OF THE LOW-COST IMPORTS OF SCRAP IRON FROM THE PEOPLE'S REPUBLIC OF CHINA.

    FIVE SHIPBREAKING YARDS ARE NOW ACTIVE IN THE CROWN COLONY, GIVING EMPLOYMENT TO SOME 5-HUNDRED PEOPLE.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
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