China Concrete’s permanent cure of plant relocation proposal ignored by the government　Resorts to temporary solution of Yau Tong plant improvement for licence renewal

HONG KONG SAR – Media OutReach – 7 June 2021 –
China Concrete Company Limited (the “Company”) filed an
appeal with the Environmental Protection Department (EPD) mid last month
regarding the Department’s decision to reject license renewal application for its
Yau Tong cement storage facility. The Company mentions that the EPD’s recent rejection
not only lacked sound justification, but the procedure also deviated from its
usual practice. The Company will keep on improving the operation conditions of its
plant and strive to get its license renewed. The Company also expresses its readiness
to build a high-tech non-polluting concrete plant and abandon the existing
plant after identifying a suitable site.

The Company mentions
that upon receiving the EPD’s notice of April 29 regarding the rejection of
license renewal for the cement storage facility of its Yau Tong plant, it filed
an appeal on May 18 and will shortly submit further documents to the appeal
committee. The EPD’s rejection procedure did not follow previous similar
renewal rejections received by the industry. In its rejection notice, the EPD
only stated that “the plant has records of poor environmental performance
in the past. It failed to submit sufficient information on the application to
prove that it has the ability to provide, install and operate feasible measures
required for effective operation.” Yet such justification was far-fetched
and was different from the usual practice of providing solid evidence. The EPD
used to issue a warning before subsequently turning down renewal applications, yet
the Company received a straight rejection without any prior warning. The Company
believes the EPD made such decision under pressure from opposition from a
minority of the public.

Being a local
company deeply rooted in Hong Kong for over three decades, the Company operates
its production plant by the side of a luxury housing site being developed by
three Chinese-funded property developers (Minmetals Land, Yuexiu Property and Qingjian
Realty). The Company believes the EPD’s decision was made under pressure from
opposition voice driven by developers, and the decision was neither impartial nor
justified. The Company has been manufacturing concrete materials essential for
Hong Kong’s infrastructure and building construction over the years. The Company
expresses its disappointment for the lack of more support from the government.

Mr. Bono Tsang of
China Concrete Company Limited adds that the plant is still in operation and
will continue to improve its production procedures, with particular attention
on the prevention of dust leakage and cleanliness of the nearby roads. The
plant has also planned future measures on the following: further reduction of
air pollution; more effective sewage and waste treatment; keeping cement trucks
dry and clean when departing from the plant; and hiring an independent
third-party environmental manager to oversee the company’s operations.

Mr. Bono Tsang admits
that improving the operation of the existing plant is only a temporary fix. A
permanent solution is to relocate the plant to another site. “As early as
May last year, we expressed to the government our willingness of relocating the
plant despite a huge investment cost, and we proactively proposed tentative locations.
Our idea is to build a high-tech, advanced pollution-free and environmentally
friendly indoor concrete plant. It will become a model for similar plants around
the world.”

Incidentally, the Company
will publish an open letter on newspaper tomorrow (June 8) (please refer to the
attachment for details) in response to concerns from residents, politicians and
media about the operation of the Company’s concrete production plant in Yau
Tong. The “Open Letter to Hong Kong Citizens” entitled “Our Love
for Hong Kong Planted on Concrete” stated that the Company’s concrete
plant in Yau Tong was constructed in the mid-1980s. The Company reminisced: Yau
Tong was deserted and there were no residential homes by then. There were only
a few ship repair factories about to wind down. Concrete was an indispensable
material for construction projects, and it must be used within two hours of
production. Therefore, Yau Tong, by then, was ideal for concrete production, a
place far away from residential areas and near the sea.

The Company believed
that the recent controversy arising from the operation of the Yau Tong plant was
a legacy from the past, as the plant had been erected in Yau Tong much earlier
than homes were built. The government was obliged to devise a long-term
solution to address the issue. The Company shared Yau Tong residents’ concerns
over health and living environment, and was willing to comply with and meet public
expectations. Having said that, the plant has been in operation for 20 years.
Despite our best effort, there are still limitations on how well we can upgrade
facilities. That means as long as the plant is still in operation here, it is incapable
of fulfilling public expectations in full.

The Company also made
two clarifications regarding descriptions about the plant on media reports:

• That
  the operation of the plant has caused pollution of nearby sea water, and
  therefore disappearance of fishes. In reality, a fish wholesale market operated
  by the Fish Marketing Office next to the plant pumps seawater there every day
  to feed fresh fish. This proves normal water quality there.
• Criticism
  about cement trucks turning roads slippery, posing dangers and causing traffic
  congestion. Such problems and further pollution issues can also be created by
  buses, container trucks, fish-carrying vehicles and transportation of recycled
  wastes that are using the same roads. It is therefore unfair to lay all blames
  on cement trucks.

The Company states
that it will keep on attending to the feedback of all parties on the operation
of the concrete plant and it firmly believes in working together with the
government and the public to achieve a win-win solution.

#ChinaConcreteCompanyLimited