Chevalier Group will focus on expanding its environmental engineering and technology businesses because of weak housing and construction sentiment. Speaking after a shareholders' general meeting yesterday, group chairman Chow Yei-ching said the construction and building services would face tougher competition after the Government suspended subsidised flat sales. Many contractors were also cautious towards the Government's Private Sector Participation Scheme subsidised housing development given tighter building regulations, he said. The construction sector was one part of the group's business portfolio, which meant the impact of these Government moves on the group was limited. Mr Chow said Chevalier would continue to diversify into such areas as pipe rehabilitation, environmental engineering and information technology business in an effort to stabilise revenue and enhance competitiveness in the market. Chevalier Group has developed into four diversified companies which operate businesses ranging from building construction, civil engineering, information technology, property investment, lifts and escalators and maintenance services. The group has three Hong Kong-listed companies - Chevalier Construction Holdings, Chevalier International and Chevalier iTech Holdings. Stephen Kuok Hoi-sang, managing director of Chevalier International, said its pipe rehabilitation business had secured contracts worth more than HK$100 million. It planned to expand the business into other Southeast Asian markets such as Singapore, Thailand and the Philippines. The company was also negotiating some environmental engineering projects in China, Mr Kuok said. Meanwhile, the group would be active in its China property and hotel portfolio in the run-up to the country's entry to the World Trade Organisation later this year, Mr Kuok said.