The Recycling Industry

Through the existing waste recovery system, about 2.81 million tonnes of municipal solid waste were recovered in Hong Kong in 2007. Of that total, 1% was recycled locally and 99% was exported to the Mainland and other countries for recycling, with an export earning of HK$6.0 billion for Hong Kong.

The recovery rates of common recyclable materials are high in Hong Kong. The recovery rate for ferrous metal is 92%, non-ferrous metal is 91%, plastic is 60%, paper is 58%, but glass is only 1.4%.

Recovered raw materials are usually exported to the Mainland for further processing into useful products. For example, plastic scraps from water bottles can be made into artificial cotton inside stuffed toys.

Hong Kong is a signatory to the Basel Convention. The pact prevents countries from dumping their waste problems on others. The agreement applies to Hong Kong through the extension of China's ratification. The EPD works closely with major waste trading partners, including all European Union member states, Canada, Australia, Japan, South Korea, Singapore, Malaysia and Thailand in monitoring and controlling transboundary waste shipments. More than 99 per cent of waste shipments coming to Hong Kong contain recyclables, the majority of which are destined for Mainland China.

Opportunities for the Recycling Industry

Hong Kong's Environmental Protection Department (EPD) is looking to develop affordable options for recyclers. An EcoPark in the New Territories area of Tuen Mun is now available for tender by batches. It provides the recycling industry with 20 hectares of land, long-term. The necessary supporting infrastructure is being set up, including access roads, drainage systems, a sewage treatment plant, potable water and an electricity supply, as well as designated marine frontage for berthing. For details, plese visit the EcoPark website at http://www.epd.gov.hk/epd/ecopark.

29 short-term tenancies have been leased to recycling operators in other areas since 1999, and progress has been made in securing more attractive sites for these tenancies. The tenancies now typically last about five years, as opposed to six months when the programme began.

From January 2006, construction contractors must pay $100 per tonne to have construction waste containing more than 50% inert material separated at sorting facilities for recycling and re-use. If they do the sorting themselves, they can deposit inert waste at public fill reception facilities, for later use in reclamation or other purposes, at $27 per tonne. Waste that contains less than 50% inert material can be dumped at landfills at $125 per tonne. The charges are expected to reduce construction waste at landfills by about 20 per cent. Details of the scheme can be found at EPD's website dedicated to construction waste. This provides a push factor for companies to consider recycling for such waste to reduce payment to EPD.

Mainland China tightened controls over imports of waste intended for recycling in 2004. Hong Kong immediately experienced an influx of electronic and plastic waste shipments as exporters turned to Hong Kong for outlets and overnight, operations sprang up in the New Territories to dismantle television and computer monitors for recyclable cathode ray tubes, and to shred plastic bottles for use in recycling on the Mainland.

Plastic scraps and metal scraps are already covered by CEPA. These waste products if collected or produced in Hong Kong can be exported into the Mainland without tariff.

Some other initiatives by the EPD may also provide business opportunities to the trade, including the expansion of mobile phone battery collection to cover all portable rechargeable batteries under the product responsibility scheme; and the launch of a territory-wide roll-out of a scheme to sort domestic waste on each floor of apartment blocks.

Due to raw material and energy shortages, the Mainland has developed many recycling techniques for various types of product and waste, ranging from plastic fibre to biodiesel.

The recycling industry is a growing industry in Hong Kong that offers many business opportunities. Furthermore, setting up in Hong Kong can serve as a demonstration plant for other Mainland cities to follow.

Invest Hong Kong is keen to help overseas and Mainland recyclers to establish operations in Hong Kong. Please talk to us about your vision.