Building Products Sector

1
Building Products Sector in Hong Kong Presente
d byElanna TamCommercial SpecialistU.S.
Commercial Service Hong Kong
2
Topics to cover

• Why Hong Kong?
• Overview of Construction and Building Products
  sector
  
• Competition and Market entry strategy
• Major upcoming projects in Hong Kong and Macau
• Niche market for U.S. firms

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Why Hong Kong?

• Growing economy
• Easy place to do business
• Access to the China and regional markets
• Helping you get your China Strategy right

4
Hong Kong developers Land reserve in
China(in USD)
Not including China Overseas, China Resources
and CITIC, which portfolios focus in investment
in China.
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Why Hong Kong, not Shanghai or Singapore
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Why Hong Kong, not Shanghai or Singapore
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Overview on Construction and Building Sector

• Construction Industry 3.2 of Hong Kongs GDP
• In 2004, the total gross value of construction
  work USD12 billion
  
• Public Sector Work 30 (USD3.6 billion)
• Private Sector Work 30 (USD3.6 billion)
• Other e.g. Renovation, EM Fitting-Out 40
  (USD4.7 billion)

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Overview on Construction and Building Sector

• Imports from the world (2004) 2.056 billion
• Imports from the States 183 million (9)
• Local market 905 million.

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Overview on Construction and Building Sector

• British Building Code, British Standard
• Metric System
• Environmentally-friendly Technology
• Energy-efficient Products
• Public Awareness
• Government Incentives

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Competition and Market entry strategy

• Imports mainly, local production negligible
  (paint, cement, steel I-beam, steel bar)
  
• Competition China (middle-ranking ceramic tiles,
  cement, glass, reinforcing steel bar, wooden
  doors, furniture)
  
• Germany (sanitary fittings, water taps, kitchen
  cabinets, lighting equipment)
  
• Italy (tiles, sanitary fittings, lighting
  equipment)
  
• Japan (ceramic wall tiles)
• Spain (tiles, sanitary fittings)
• United Kingdom (fire resistant materials e.g.
  instumescent strips, instumescent paints,
  ironmongery, metal lathing, angle lathing)
  
• U.S. known for quality and advanced technology

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Competition and Market Entry Strategy

• No trade barrier
• Hong Kong re-export 50 imports to China
• 200,000 SME
• Agent/distributor
• Brand-build with specifiers, professional
  institutes

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Major upcoming projects in Hong Kong (in USD
million)

• West Kowloon Cultural Hub 5,000
• Hong Kong-Macau-Zhuhai Bridge 2,200
• Ocean Park Revamp Plan 705
• Stadium (70,000-seat) for Kai Tak Airport
  site 647
  
• Cruise Terminal 87
• Expansion of HK International Airport at Chek Lap
  Kok
  
• (upgrade passenger terminal USD200 Million
  
  
• airfield improvement USD388 million)
  582
  
• Logistic Park (USD194 million govt infrastructure
  work) 400
  
• Hong Kong Government Headquarters 513
• TST civic center 10
• Tai O Village heritage restoration 9
• Aberdeen waterfront beautification work(4-5
  contracts) 5
  
• Lantau Island other theme park ?
• Golf at Lantau island and Saikung ?
• TOTAL 10,100

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Major upcoming projects in Macau (in USD million)

• Cotai Development (Macau) 12 billion
• Wynn Resorts (Macau) 705 million
• The Venetian (Macau) 1.8 billion
• MGM Mirage SJM (Macau) 800 million

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Niche Market for U.S. firms

• Tourism projects building materials and
  construction equipment
  
• Green Building Products

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Niche Market for U.S. firms

• Materials from sustainable sources e.g. timber
• Recycled content wall, tiles, carpet, board,
  countertop
  
• Improves IEQ or IAQ PVC-free carpet, low VOC
  content paint/adhesives, air filtration system
  
• Improve water efficiency low flow/waterless
  toilet fixture, reuse grey water
  
• Energy-saving lighting equipment and motors
• Infra-red motion sensors
• Heat recovery devices
• Other environmentally-friendly building products

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Thank you for your attention!

• Elanna TamCommercial Specialist
• U.S. Commercial ServiceAmerican Consulate
  General
  
• 33 Garden Road, Central
• Hong Kong (SAR)
• Phone 852 / 2521-5950Fax 852 /
  2845-9800Email Elanna.Tam_at_mail.doc.gov