SHUN Tak Holdings and China Merchants Holdings (Hong Kong) are teaming up to plough $1 billion into redeveloping their two former shipyards in Cheung Sha Wan into a massive single industrial complex. The redevelopment will comprise five towers with a total floor space of 2.5 million sq ft, making it the largest single industrial complex in the area. The two shipyards will provide a total development site of just over 200,000 sq ft. Shun Tak and China Merchants do not yet own the sites but they say they have the Government's full backing to proceed with the scheme. Negotiations on how much premium the companies would have to pay the Government for redevelopment rights should be concluded within a week, said a spokesman for Shun Tak. Activities at Shun Tak's Cheung Sha Wan ship-repair yard and China Merchants' Yiu Lain dockyard have been relocated by the Government, leaving the two sites vacant. Shun Tak's repair yard is now on Tsing Yi Island. Shun Tak will hold a majority 64.56 per cent stake in the joint-venture redevelopment company, while China Merchants will hold 35.44 per cent. Completion is planned for 1997.