ENGLONG International, formerly known as Unison International, plans to relocate its Hong Kong knitting manufacturing facilities to Zhongshan, Guangdong province, to improve its operating efficiency. Chairman and managing director Michael Huang said the relocation would reduce operating costs. He also said the company might enter into joint ventures with Chinese partners to explore the mainland market. He said there was huge potential for the garment market in China, and Englong would diversify the variety of its products to meet market demands. To better position its entry to the mainland market, Mr Huang said the company would also establish sales offices in major cities such as Guangzhou, Shanghai and Beijing. Englong is now 64.5 per cent owned by Englong Ltd, a company owned by Mr Huang which took over Unison from SEA Holdings. Mr Huang said Englong would continue to focus on industrial, property and securities investment as its core businesses. Englong owns about 15,000 sq ft of floor space in Houston Centre in Tsim Sha Tsui, which is expected to generate an annual rental income of $4 million to $5 million next year. The company also has a 22 per cent stake in MKI Corp. During the takeover, a proposal was made for Englong to acquire a 51 per cent interest in two Hong Kong properties for $120 million from Mr Huang, but it was dropped. Mr Huang said the scrapping of the proposal was to make it clear that the major shareholder had no intention to take advantage of the asset injection.