Hong Kong companies are keen to support the new EU "green manufacturing" laws coming into effect this year, according to the manager of one of the largest German sourcing companies based in Hong Kong. 

Horst Dettenthaler, executive manager hardware of Karstadt Quelle (Far East) & Co, said the willingness of Hong Kong producers to embrace "green manufacturing" will give them a competitive edge. 

"As far as Hong Kong manufacturers are concerned, they are already talking about 'green' manufacturing. They are very willing to support the new rules across all stages of production, from R&D, parts supply, set up and quality control to the final assembly. This could well give Hong Kong a competitive advantage over other areas in the future."

Hong Kong has responded to the EU's call for manufacturers to adopt environmentally friendly production processes by setting up the Hong Kong Green Manufacturing Alliance. The move comes ahead of the enforcement of WEEE (Waste on Electrical & Electronic Equipment) and ROHs (Restriction on Hazardous Substances) directives effective from August 2005 and July 2006 respectively.

Duty of care

Dr K.B Chan, chairman of Hong Kong Green Manufacturing Alliance, says that Hong Kong is located next to the “factory of the world” and has a duty as “responsible corporate citizens” to be green aware

Alliance chairman Dr K.B Chan said that as Hong Kong is next to the "factory of the world" in southern China, it is "our duty to promote Hong Kong companies as responsible corporate citizens".

Given the urgency of the EU directives, the Green Manufacturing Alliance was set up under the umbrella of the Hong Kong Federation of Industries which is the de facto representative of Hong Kong industries. It includes members from seven of the most affected industries - electrical, electronics, toys and games, watches and clocks, medical equipment, critical components and metal stamping.

Aside from Japan, Hong Kong is a leader in Asia with the formation of such an alliance. "The Green Manufacturing Alliance hopes to create green awareness and help transform manufacturing in Hong Kong into environmentally friendly processes to maintain competitive edge," said Dr Chan at a recent TDC webcast.   

The transition will be a complicated and difficult process. Under the WEEE directive, the producer or importer has to bear responsibility for collecting and dismantling the product.

Dr Chan explained that a lot of work has to be borne by the manufacturer. "It sounds simple, but a product has to be made just as fast to dissemble as it is to assemble. The designers and the engineers may have to look at extending the life span of a product. Instead of lasting seven years, it has to be extended, let's say, 14 years."

Worldwide compliance

Then, on the technical side, a product must not contain hazardous or toxic components. "A finished product can be made up of 1,000 components and involve over a hundred manufacturers. It's a titanic effort to ensure that all the suppliers will comply with the safety regulations," added Dr Chan. 

It's not enough just talking about EU directives, according to Dr Chan.

"On the surface it is an EU directive, but Hong Kong manufacturers export their products worldwide. We can't say the goods that are shipped to EU will be green while those destined for South America won't be. We're talking about worldwide compliance.

"There's a big green market out there and it's global now. Hong Kong companies must be more green aware and know what to do in order to maintain competitiveness," said Dr Chan.

Related link
Hong Kong Green Alliance