The company also shares its experience with other factories, he added.

He said that sound environmental stewardship is more than just a matter of strategic capital investment. Sometimes a change of management mindset is necessary.

"It's a wrong perception to think that environmental initiatives will be successful just because a company is spending more money. What is important is building staff competency," he said.

Chai said environmental initiatives would add to operational costs, but that was unavoidable.

"This is a capital investment, without which we could not expand our business and achieve sustainable growth," he said. "Companies should be ready for future changes and take a long-term planning view, enabling them to meet the changing regulations."

Moving to the central region to escape the rules is not a lasting solution, Chai added.

To prepare Hong Kong entrepreneurs to meet ever-stricter environmental requirements, the FHKI would propose that the special administrative region's (SAR) government spend HK$210 million ($27 million) to help the factories upgrade their facilities.

Andrew Leung, FHKI honorary president, said earlier that the Hong Kong government had launched a pilot scheme through which it provided HK$1 million and assistance to 10 factories. He said the federation was also considering setting up pilot centers in Dongguan and Shenzhen to showcase environmental technology and certification work.

                                                                       (China Daily 01/31/2007 page4) 

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