BEIJING Development (Hong Kong), formerly Hong Kong Worsted Mills, is negotiating a joint venture in Beijing to relocate its Hong Kong woollen and worsted manufacturing facilities.
Managing director Brian Ng Kong-fat said it would seek a Chinese partner to run a joint-venture plant in Beijing, which he said offered technology support for the woollen and worsted manufacturing industry.
He said the joint venture, yet to be finalised, would mainly manufacture products for export, but would also explore the domestic market.
Mr Ng said the proposed venture would allow the relocation of the company's Hong Kong manufacturing operations to the mainland, which would cut production costs.
He estimated that the relocation would result in savings of up to $15 million on labour costs a year, and leave vacant about 120,000 sq ft of factory space in Hong Kong for leasing purposes.
Mr Ng said Beijing Development was looking for new investments in China to increase its earnings base in the short term to speed its growth.
He said investments would target office, retail and residential projects.