Scheme boosts new industrialisation

August 11, 2024

Technology upgrade:

With government support, a family-owned fruit and vegetable juice manufacturer has been able to replace manual production processes with smart machinery.

Enhanced sterilisation:

Juice manufacturer Sam Chan explained that his firm’s new sterilising equipment has extended the shelf life of its products.

Tailored solutions:

Hong Kong Productivity Council Chief Digital Officer Edmond Lai says the council addresses industry pain points by helping enterprises to adopt the right innovation and technology applications for their needs.

Strong impetus:

Commissioner for Industry (Innovation & Technology) Ge Ming believes Hong Kong should apply its innovation and technology strengths for the benefit of industry, in order to boost the city’s economic development.

Download Video| Transcript

Voiceover:

This factory has produced fresh fruit and vegetable juice every day since its establishment in 2010.

As with many other traditional manufacturing enterprises in Hong Kong, heavy reliance on manpower has been a limiting factor in the firm’s development. 

In 2018, Sam Chan took over the family business with a vision to upgrade and transform its operations. With the help of the Hong Kong Productivity Council, or HKPC, a smart production line was installed.

Fruit & vegetable juice manufacturer Sam Chan:

We used to do all the procedures manually, including a lot of transportation, grinding and bottling. Now we have machines to do all the work. It also safeguards quality and hygiene.

Voiceover:

The company also introduced a retort machine, which utilises high-pressure steam to sterilise products.

Hong Kong Productivity Council Chief Digital Officer Edmond Lai:

One of the challenges for them is how to disinfect their products. And, of course, traditionally we can add chemicals into it. Nowadays we are all talking about healthy food. We do not want any chemicals added to food. 

That is why we provided them with a high-pressure disinfection method, to use high pressure to help them to disinfect the juices. 

Fruit & vegetable juice manufacturer Sam Chan:

With the introduction of the new steriliser, the shelf life of our products has been extended from 10 to 12 days to 90 days at most.

Voiceover:

In addition to the company’s machinery, intelligent sensors have been installed in the production line to collect production data on aspects such as electricity and water consumption, for cost analysis.

The HKPC aims to address industry pain points through the application of innovative technologies.

Mr Lai stressed that rapid iteration of high-end technologies can be a burden on small and medium-sized enterprises.

Hong Kong Productivity Council Chief Digital Officer Edmond Lai:

They would not have the capability in-house to deal with all sorts of technology. 

And that is where we add value. We help them with the technology, starting from the whole design of the layout, then selecting the right machine, implementing the smart technology, all the ways that we can provide turnkey solutions.

Voiceover:

Introducing new technology to traditional industries can be costly to firms but the Government is able to help.

The New Industrialisation Funding Scheme was launched in July 2020 to subsidise manufacturers in setting up new smart production lines in Hong Kong by providing matching grants.

Mr Chan’s company has been one of the beneficiaries.

To further promote the development of new industrialisation, the scheme has been enhanced.

Commissioner for Industry (Innovation & Technology) Ge Ming:

The Chief Executive announced the enhancement measure in the policy measures of his 2023 Policy Address, which allows an applicant enterprise to carry out up to three projects concurrently, with total maximum funding of $45 million under the scheme. The enhancement measure has been launched on January 8 this year. 

We target to have at least 130 smart production lines in Hong Kong by 2027.

Voiceover:

The commissioner said Hong Kong needs to apply its strengths in the innovation and technology sector for the benefit of industry, and promote new industrialisation to give a new impetus to the city’s economic development.

In July 2020, the Government launched the New Industrialisation Funding Scheme (NIFS) to subsidise local manufacturers in setting up new smart production lines in Hong Kong. The NIFS involves awarding grants, with the Government topping up sums spent by companies on new equipment on a 1:2 basis.

Established in 2010, Sam Chan’s company – a family-owned firm that produces fresh fruit and vegetable juices – is among the beneficiaries to date. As with many other traditional manufacturing enterprises in Hong Kong, heavy reliance on manpower and manual manufacturing processes limited the firm’s development in its early years.

After taking over the business in 2018, Mr Chan resolved to upgrade and transform its operations, and with the help of the Hong Kong Productivity Council, he set up a smart production line.

The whole production process is now done by machines, making it more hygienic. The company has also introduced a retort machine, which uses high-pressure steam to sterilise products.

“In the past, the shelf life of our products was only about 10 to 12 days, but with the new steriliser it can be extended to 90 days at most,” said Mr Chan.

In addition, the production line is equipped with smart sensors that enable data to be collected on aspects such as electricity and water consumption, for cost analysis.

Innovative solutions

Believing that innovation and technology (I&T) are the cornerstones of smart production, the HKPC actively assists enterprises in applying I&T solutions to address industry pain points. The technologies it helps companies to adopt correspond to the actual needs of different industries.

In the case of the food and beverage industry, focus on sterilisation has grown over the years. In working with Mr Chan’s company, the council’s priorities have been to extend the shelf life of products while avoiding the use of preservatives or additives in the sterilisation process.

The council’s Chief Digital Officer Edmond Lai explained that the application of I&T in manufacturing varies according to the characteristics of different products. He added that the council provides customised services to different sectors, with the overall aim of enhancing the competitiveness of Hong Kong’s manufacturing industry.

Policy support

The Chief Executive announced plans to enhance the NIFS in his 2023 Policy Address. From January 8 this year, applicants are able to carry out a maximum of three projects at any one time, accessing a maximum of $45 million in total funding.

Commissioner for Industry (Innovation & Technology) Ge Ming emphasised that the enhanced policy is designed to further promote the development of new industrialisation.

“The Government's target is to achieve a total of at least 130 smart production lines by 2027,” he said.

Mr Ge added that Hong Kong should apply its I&T strengths, and its scientific research capabilities, to promote new industrialisation, giving a new impetus to the city’s economic development.

As of mid-July, the New Industrialisation Vetting Committee had agreed to support 43 applications to the NIFS, delivering a total of 68 production lines in sectors ranging from food manufacturing and processing, to textiles and clothing, construction materials, medical devices, and more.