Building Products Sector in Hong Kong Presented by Elanna Tam Commercial Specialist U.S. Commercial Service Hong Kong - PowerPoint PPT Presentation

Building Products Sector

in Hong Kong

Presented byElanna TamCommercial SpecialistU.S. Commercial Service Hong Kong

• Why Hong Kong?
• Overview of Construction and Building Products sector
• Competition and Market entry strategy
• Major upcoming projects in Hong Kong and Macau
• Niche market for U.S. firms

• Growing economy
• Easy place to do business
• Access to the China and regional markets
• Helping you get your China Strategy right

Hong Kong developers’ Land reserve in China(in USD)

* Not including China Overseas, China Resources and CITIC, which portfolios focus in investment in China.

Why Hong Kong, not Shanghai or Singapore

Why Hong Kong, not Shanghai or Singapore

• Construction Industry: 3.2% of Hong Kong’s GDP
• In 2004, the total gross value of construction work = USD12 billion
• Public Sector Work: 30% (USD3.6 billion)
• Private Sector Work: 30% (USD3.6 billion)
• Other e.g. Renovation, E&M Fitting-Out: 40% (USD4.7 billion)

• Imports from the world (2004): 2.056 billion
• Imports from the States: $183 million (9%)
• Local market: $905 million.

• British Building Code, British Standard
• Metric System
• Environmentally-friendly Technology
• Energy-efficient Products
• Public Awareness
• Government Incentives

• Imports mainly, local production negligible (paint, cement, steel I-beam, steel bar)
• Competition: China (middle-ranking ceramic tiles, cement, glass, reinforcing steel bar, wooden doors, furniture)
• Germany (sanitary fittings, water taps, kitchen cabinets, lighting equipment)
• Italy (tiles, sanitary fittings, lighting equipment)
• Japan (ceramic wall tiles)
• Spain (tiles, sanitary fittings)
• United Kingdom (fire resistant materials e.g. instumescent strips, instumescent paints, ironmongery, metal lathing, angle lathing)
• U.S. known for quality and advanced technology

• No trade barrier
• Hong Kong re-export 50% imports to China
• 200,000 SME
• Agent/distributor
• Brand-build with specifiers, professional institutes

• West Kowloon Cultural Hub 5,000
• Hong Kong-Macau-Zhuhai Bridge 2,200
• Ocean Park Revamp Plan 705
• Stadium (70,000-seat) for Kai Tak Airport site 647
• Cruise Terminal 87
• Expansion of HK International Airport at Chek Lap Kok

(upgrade passenger terminal – USD200 Million

airfield improvement USD388 million) 582

• Logistic Park (USD194 million govt infrastructure work) 400
• Hong Kong Government Headquarters 513
• TST civic center 10
• Tai O Village heritage restoration 9
• Aberdeen waterfront beautification work(4-5 contracts) 5
• Lantau Island other theme park ?
• Golf at Lantau island and Saikung ?

TOTAL 10,100

Major upcoming projects in Macau (in USD million)

• Cotai Development (Macau) 12 billion
• Wynn Resorts (Macau) 705 million
• The Venetian (Macau) 1.8 billion
• MGM Mirage – SJM (Macau) 800 million

• Tourism projects building materials and construction equipment
• Green Building Products

• Materials from sustainable sources e.g. timber
• Recycled content: wall, tiles, carpet, board, countertop
• Improves IEQ or IAQ: PVC-free carpet, low VOC content paint/adhesives, air filtration system
• Improve water efficiency: low flow/waterless toilet fixture, reuse grey water
• Energy-saving lighting equipment and motors
• Infra-red motion sensors
• Heat recovery devices
• Other environmentally-friendly building products

Elanna TamCommercial Specialist

U.S. Commercial ServiceAmerican Consulate General

33 Garden Road, Central

Hong Kong (SAR)

Phone: +852 / 2521-5950Fax: +852 / 2845-9800Email: Elanna.Tam@mail.doc.gov