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Ocean Grand sees gold in new plant's waste water

May Chan

Gold and waste water are being seen as potential money-makers by a listed Hong Kong electroplating and aluminum extrusion company.

Ocean Grand Holdings, one of the top five producers of extruded aluminum in China, last Friday opened a HK$100 million plant in Zhuhai aimed at the soaring demand for electroplating salts in the mainland.

An Ocean Grand subsidiary, Kenlap P.G.C. Manufacturer will produce silver salts, palladium salts and rhodium sulphate at the plant, with an eye to adding gold to that list.

Ocean Grand chairman Michael Yip said he expected the deregulation of the mainland gold market to provide a good opportunity for gold electroplating when restrictions were lifted.

He also sees the Kenlap plant's waste water processing system, which will recover precious metals while removing dangerous pollutants, generating lucrative returns for the company.

Clients will have to pay for the detoxification service while the company will make use of the recovered materials.

Mr Yip said the company was planning to apply for a licence to provide gold-electroplating in the mainland later this year.

'The pace of deregulation of the mainland gold market is hastening, demand for gold in China is surging and there are plenty of gold suppliers. We should make use of this emerging business opportunity,' Mr Yip said.

Ocean Grand assistant director William Kwan projected an annual revenue of more than HK$600 million to be generated by the Kenlap plant this year.

'I believe it can break-even within months as the market demand is ample in China,' he said.

Mr Yip said the demand for precious metal was booming thanks to strong economic growth and China's entry into the World Trade Organisation.

Ocean Grand is waiting for a hearing from the Hong Kong exchange on the separate listing of Kenlap.

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