The manufacturers moving production from China back to Hong Kong
Rising labour costs over the border are sparking a mini reindustrialisation of the city
Alan Cheung Yick-lun may just be part of a brave new world for Hong Kong industry. Local manufacturing had long been hollowed out by the shift to low-cost bases in southern China, but factories are starting to come to life again here, due to entrepreneurs such as Cheung.
He recently opened an 80,000 sq ft facility in Tsuen Wan, where his Grandion garment company makes T-shirts primarily for online retailers. Although Grandion operates three factories employing more than 3,000 workers in China, the new facility is the company's first in Hong Kong.
The appreciating yuan and rising labour costs have led to an exodus of manufacturing from the Pearl River Delta. But while some industrialists have relocated to low-wage countries such as Myanmar, others have set up in Hong Kong.
Federation of Hong Kong Industries chairman Stanley Lau Chin-ho sees a nascent revival of small-scale manufacturing in the city.
"We encourage businessmen engaging in innovative, high-value-added manufacturing to come back. These are not the labour-intensive industries, but those that involve hi-tech equipment such as health care, watches and jewellery. The entire process, from research and development to design and production, can be moved to Hong Kong."
Federation statistics show the number of Hong Kong companies with factories in the Pearl Delta region has dropped from 55,000 in 2006 to 32,000 in 2015.