A flying start Waste not, want not Eat sustainably - The quest for seafood HAECO Xiamen's exciting relocation plans Shaping the future of energy ...
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Issue 01 / 2020
A flying start
HAECO Xiamen’s exciting
relocation plans
Waste not, want not
Shaping the future
of energy
Eat sustainably
The quest for seafood
sustainability
1
contents
CORPORATE NEWSWIRE
ISSUE 01 / 2020
HAECO Xiamen has unveiled plans to relocate its entire operations to a
state-of-the-art facility at Xiamen’s new Xiang’an International Airport,
due to open in late 2023. More on page 20.
02 18 20 26 33
NEWSWIRE INSIDER CENTRE STAGE PEOPLE 150TH
ANNIVERSARY IN
HK
Editor
Cindy Cheung
Deputy Editor
Charlotte Bleasdale
The Swire group is a multinational, multi-disciplined commercial group, with its principal areas
of operations in the Asia Pacific region, and centred on the Greater China area. Hong Kong is
home to publicly quoted Swire Pacific, whose core businesses are grouped under five operating Design I Production
divisions: property, aviation, beverages, marine services, and trading & industrial. John Swire & Sons Barry Chu
Limited, headquartered in the UK, is the parent company of the group. In addition to its controlling
shareholding in Swire Pacific, John Swire & Sons Limited operates a range of wholly-owned
businesses, including deep-sea shipping, cold storage, offshore and road transport logistics services,
waste to energy, mining services, and beverage ingredients with main areas of operation in Australia,
Papua New Guinea, East Africa, Sri Lanka, the USA and the UK.
is published in Hong Kong, by the Swire Group Public Affairs Department.
To view the digital version, please go to www.swire.com/swirenews
Copyright©2020
ISSUE 01 / 2020
2 3
NEWSWIRE NEWSWIRE
James Hughes-Hallett, who died
James on 12th October, aged 70, was Chairman
of John Swire & Sons Limited 2005-2015
Limited and shipping was to feature
prominently throughout his 40-year
career with Swire. His depth of knowledge
deep-sea merchant vessels built by a UK
shipyard. He took over the Taipan’s role on
1st June 1999.
earth, with a disarming propensity to
self-deprecation, James, like Peter, was
an excellent ‘people person’: ‘a great
uncle. He was also Deputy Chairman of
the Attingham Trust, which runs courses
in fine arts and architectural heritage,
Wyndham John – becoming the first non-Swire or Scott
family member to lead the Swire group.
and experience thus stretched all the
way from the complex partnerships James Hughes-Hallett was born in London
mentor to others’, recalled a former
colleague. However, his easy affability hid
a founder of the charity Art History in
Schools, and a trustee of the renowned
Hughes-Hallett Prior to this, he was Chairman of Swire that enabled China Navigation to in 1949. From an early age, he embraced an essentially private man, who possessed Dulwich Picture Gallery.
Pacific and Cathay Pacific in Hong Kong effect the transition from conventional life with both hands. Growing up in the a formidable intellect. A true polymath,
for five and a half years. His Taipanship cargo handling to containers, to the 1960s on the Oxfordshire country estate he took a life-long pleasure in learning Cutting a slightly eccentric figure as he
encompassed a period of unprecedented sophisticated, self-geared multipurpose where his father was land agent, he was for its own sake, reading voraciously and sped around central London between
growth of the Mainland Chinese market; vessels that would become its trademark an audacious horseman; in adulthood, he enjoying an almost spiritual connection meetings on his bicycle, James was
1949-2019 but also a deepening global recession
in the wake of the ‘dotcom bubble’ and
in the Pacific. transferred his affections to motorbikes,
which later cost him a lengthy spell in
with art – which he once remarked was
‘all about interpreting memory in so many
also a governor of the School of Oriental
& African Studies and a non-executive
9/11, as well as, closer to home, the SARS James rapidly climbed the corporate hospital, after a nasty accident in Hong different guises’. In Asia, he indulged director of HSBC (2005-2014). On his
crisis of 2003 – challenges he met with ladder, with spells in Hong Kong, Taiwan Kong. In his early outport bachelor days, this by building a collection of Chinese retirement from Swire in 2015, he was
his habitual good humour, patience and and Japan – including a stint as Cathay he garnered a reputation amongst his and Japanese artworks and pursuing a appointed Chairman of Clarkson’s, the
pragmatism. Pacific country manager. In 1989, he was peers as a hard-worker and hard-player scholarly interest in ceramics – to the shipping and services group.
posted to Sydney, as Managing Director of – but endeared himself to local staff extent of taking lessons in the craft from
Educated at Eton and at Merton College, John Swire & Sons Pty and right-hand to by taking enormous trouble, during his Japanese masters. James was awarded the Silver Bauhinia
Oxford, where he read English, James Edward Scott, Chairman of the Australian various postings, to absorb and appreciate Star of Hong Kong in 2004 and was
joined Swire in 1976, after first qualifying portfolio, which was then rapidly local culture and customs. He explored Back in London as group Chairman from appointed CMG in 2012. During his lengthy
as a Chartered Accountant with the growing its cold storage and agricultural more literally on foot: trekking into the 2005, he devoted considerable energy illness, he continued to give his time – and
London firm of Dixon Wilson. In his businesses and which also controlled a hills behind the cities where he worked outside of work to the mission of engaging was also a generous benefactor – to the
application, however, he expressed his broad range of interests in Papua New – on one occasion, rescuing the new young people in art. He was Chairman of causes he held dear.
hopes of moving away from that discipline, Guinea. He returned to Hong Kong in 1993, MD of Hong Kong port operator, Modern both the Courtauld Institute of Art, (where
noting that Swire offered ‘…opportunities when he was appointed Chairman and Terminals, who had collapsed as they he oversaw a period of expansion of the James married first, Betsy Hall, (dissolved)
which I think represent the kind of work I Managing Director of the China Navigation hiked the MacLehose Trail. school’s teaching and research roles), and secondly, Katrina Repka, who survive
should now like to undertake. I should not Company, overseeing, inter alia, the and of the Esmée Fairbairn Foundation, him with his daughters.
like to work specifically as an accountant arrival into the fleet of the company’s As Taipan, James carried on the open- a charity supporting the arts, as well as
for John Swire & Sons…’ Indeed, his first first Capesize bulk carrier, Erradale, one door style of leadership introduced by environmental and social projects that had
posting was to Swire Shipping (Agencies) of the largest – and also one of the last – his predecessor, Peter Sutch. Down-to- been established by his maternal great-
ISSUE 01 / 2020 ISSUE 01 / 2020
4 5
NEWSWIRE CORPORATE CORPORATE NEWSWIRE
Senior management appointments
United States Cold Storage
Larry Alderfer has been appointed
President & CEO of United States
Cold Storage with effect from 150th anniversary in HK
1st January 2020. Mr Alderfer This year represents a significant milestone for Swire,
replaces David Harlan, who has when we celebrate 150 years of doing business in
retired after 40 years of service, Hong Kong. To mark this important occasion, we have
but will remain on the Board of commissioned a special logo for 2020 and the theme is
Directors. Swire’s commitment to Hong Kong. This is expressed
in the subtle graduation of the lines, representing our
Swire Pacific and Swire Properties progress and development over time, while the colour gold
Merlin discusses
St.John Flaherty, currently Senior Adviser to John symbolises the prosperity and opportunities that Swire
the group’s Swire & Sons (H.K.) Limited, will also assume the group businesses create.
Guangzhou
investments with
responsibilities of Company Secretary for Swire
Mr Wen Guohui. Pacific and Swire Properties with effect from 15th Our anniversary will be commemorated by a series of
January 2020. events in 2020 and a new book tells the story of the group’s
transformation from a China Coast trading firm into the
Cathay Pacific global conglomerate it is today. We will also be launching
Paul Chow, currently Group General Counsel to an interactive exhibition on our Hong Kong history. A year-
Meeting in Guangzhou the Cathay Pacific Group, will also assume the long celebration awaits: keep an eye out for more news on
In October, John Swire & Sons (H.K.) Limited Chairman, China's New Round of Reform and Opening-up”. Prior responsibilities of Company Secretary with effect upcoming events over the next few issues of Swire News.
Merlin Swire, attended the fourth Understanding China to the Guangzhou session, foreign delegates met with from 15th January 2020. Let’s make this milestone year a very special one!
Conference, held in Guangzhou. Co-hosted by the China President Xi Jinping at the Great Hall of the People in
Institute for Innovation and Development Strategy, Chinese Beijing.
People's Institute of Foreign Affairs, People’s Government
of Guangdong Province and the 21st Century Council of the During his visit to Guangzhou, Merlin met with the city’s
Berggruen Institute, the conference acts as an influential Mayor, Mr Wen Guohui, to brief him on the group’s Empowering young talent
platform for disseminating China’s development strategies latest business developments. Mr Wen spoke very On 7th November, a gathering was
to the world. Around 600 politicians, strategists, scholars highly of Swire’s investments in Guangzhou and said held to mark the conclusion of 2019’s
and business leaders from 17 countries and regions that local government would fully support the group to “Scheme on Corporate Summer
took part in the two-day event and there were in-depth expand its investment in the city. Internship on the Mainland and
discussions around the theme of “New Globalisation and Overseas”. The programme was a
collaboration between Swire and the
HKSAR Government that provided 20
young people with the opportunity to
Shanghai forum take up summer placements at the
John Swire & Sons (H.K.) Limited Chairman, Merlin Swire, Mainland offices of five Swire group
attended the 31st annual International Business Leaders' operating companies, including Cathay
Advisory Council for the Mayor of Shanghai in October. This Pacific, HAECO, Swire Coca-Cola, Swire
year’s theme was enhancing Shanghai’s capacity and core Foods and Swire Properties. At the
competitiveness, and the company had submitted a paper event, interns shared their experiences
recommending ways in which the city’s two international of working in these different businesses.
airports can better serve the Yangtze River Delta region Merlin Swire The scheme aims to provide future
– particularly through improvements to their network and Mr Ying Mrs Cherry Tse,
Yong. Permanent Secretary
business leaders with the opportunity
connectivity. for Home Affairs, to gain first-hand knowledge and
HKSAR Government understanding of Mainland China’s
(third from right)
Merlin also met separately with the Mayor of Shanghai, Mr and Ivan Chu, John business environment and cultural
Ying Yong, to discuss the group’s businesses in Shanghai Swire & Sons (China) landscape.
Chairman (second
and Swire’s plans for further expansion in the city. from right), at the
gathering.
ISSUE 01 / 2020 ISSUE 01 / 2020
6 7
NEWSWIRE PROPERTY PROPERTY I AVIATION NEWSWIRE
New residential project Extended ITM support
A consortium formed by Swire Properties, Kerry In October, HAECO ITM signed an agreement with
Pacific Place at 30
Properties Limited and Sino Land Company Air Hong Kong (“AHK”) to provide inventory technical
Pacific Place celebrated its 30th
Limited has won a tender to develop the Mass management support for the airline’s Airbus A330-
birthday in style, with the Mall’s
Transit Railway Corporation’s Wong Chuk Hang 300 freighter fleet. The contract covers component
Garden Court transformed into an
Station Package Four residential project. The maintenance, repair and overhaul services, repair
interactive, nature-themed playground.
project site, near Aberdeen in Hong Kong Island’s management, component pooling, component
The installation, inspired by the way a
south, will provide an approximate gross floor engineering support services and aircraft-on-ground
tree earns its rings with each year that
area of 638,000 square feet and is expected to be support. In addition to the Airbus A330-300F, HAECO
passes, served as a reminder of how
developed as two residential towers, offering about ITM also provides inventory technical management
Pacific Place has evolved over the past
800 residential units. support for AHK’s A300-600 freighter fleet.
three decades, and came complete
with three “tree houses” that could
be accessed by visitors. Shoppers
were also offered a range of tempting
sales redemption privileges. Since
completion in 1989, Pacific Place has
transformed the Admiralty district,
becoming an iconic shopping and
dining destination in Hong Kong’s CBD.
Port Moresby project breaks ground
Steamships Trading Company has launched
its Harbourside South project at a ground-
breaking ceremony in October. The quarter
of a billion Kina project will provide Port
Moresby’s vibrant Harbourside Precinct with The graduation
a new tower comprising 21 storeys of prime ceremony for
I Can Fly 2019.
residential apartments, retail, commercial
and car parking spaces. The building project
is a partnership between Steamships and the Dreams soar
Papua New Guinea Sustainable Development Cathay Pacific’s eighth I Can Fly community programme Kong. Another highlight of the programme was a summer
Programme. Scheduled for completion by ran from March to August 2019. One hundred and eighty trip to Flight Training Adelaide in Australia. Thirty
2022, the Harbourside Precinct, located on local secondary school students took part in training for outstanding students joined the trip and met some of the
Stanley Esplanade, is expected to become a ground and flight operations, went on educational tours airline’s cadet pilots, as well as getting the chance to fly a
landmark property for the PNG capital. of aviation facilities, and worked on community projects. light aircraft. Launched in 2003, I Can Fly is supported by
In addition to encouraging youngsters to consider careers multiple departments across the airline business and is
in the aviation sector, the project also engages them in designed to nurture an enthusiasm for aviation amongst
Steamships Trading Company’s Managing Director, Michael Scantlebury
social issues, such as combating plastic pollution, tackling young people.
(left), Papua New Guinea’s Prime Minister, Mr James Marape (third from food waste and supporting ethnic minorities living in Hong
left) and Steamships Chief Operating Officer, Rupert Bray (third from
right) officiated at the ground-breaking ceremony.
ISSUE 01 / 2020 ISSUE 01 / 2020
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NEWSWIRE AVIATION I BEVERAGES & FOOD CHAIN BEVERAGES & FOOD CHAIN NEWSWIRE
Exciting new recycling initiatives
September 2019 saw the launch of two major projects as brand and receive a cash reward. The
HK Express forum
part of Swire Coca-Cola’s commitment to ‘Drink Without “Tap, Return & Earn” Beverage Bottles
HK Express held its first
Waste’ – a multi-stakeholder initiative that focuses on Redemption Scheme, in partnership
Townhall meeting for staff
reducing waste from beverage consumption. On 25th with Octopus Cards Limited and
on 24th October along with
September, a ground-breaking ceremony was held for Hong World Green Organisation, adds a
its sixth birthday celebration,
Kong’s first food-grade plastics recycling facility. Located at HK$0.2 cash rebate per bottle to the
since joining the Cathay
the Tuen Mun EcoPark, the facility is a joint venture between depositor’s Octopus stored-value travel
Pacific Group in July last
Swire Coca-Cola, ALBA Group Asia and Baguio Waste card; Octopus is the most extensively-
year. Led by CEO Mandy Ng
Management & Recycling, and will be operated under the used e-payment platform in Hong Kong.
and senior management,
banner of New Life Plastics Limited (“NLP”). It will be able
the forum provided an
to process around 35,000 metric tonnes of polyethylene Information stored in the bottle’s
opportunity to update staff
terephthalate (“PET”) and high-density polyethylene barcode is scanned for identification and data
on strategic development
(“HDPE”) plastic on an annual basis, ‘closing the loop’ by analysis before it is compressed and deposited
plans for the airline.
turning the waste into reusable raw materials for high- into a receptacle for collection by authorised recyclers.
quality consumer and industrial products. In addition to raising public awareness about municipal
waste management, the scheme is expected to help
The same month saw the launch of Swire Coca-Cola’s new identify the right parameters for a viable beverage
“smart” reverse vending machines that enable customers packaging recovery, reduction and recycling regime for
to dispose of empty recyclable plastic drink bottles of any Hong Kong under the “shared responsibility” concept.
Marking three decades of growth
Swire Coca-Cola’s first Mainland bottling plants, Swire
Coca-Cola Jiangsu and Swire Coca-Cola Zhejiang,
celebrated their 30th anniversaries in October.
Thousands of guests joined anniversary events held
at the companies’ facilities in Nanjing, Jiangsu and
Hangzhou, Zhejiang, marking a significant milestone in (Left to right) NLP’s Nigel
Mattravers, ALBA Group CEO,
the expansion of Swire’s beverages business in China Dr Axel Schweitzer, Mr Wong
since 1989. Kam-sing, Secretary for the
Dang Jian, Swire Environment, HKSAR Government,
Coca-Cola’s Mr Ben Ng, Chairman & Executive
Executive Director Director of Baguio, Pat Healy,
– China (right) and Chairman of Swire Coca-Cola and
Mr Fan Lingyun, Mr Matthew Lobner, HSBC’s Head
CEO of RetailEye of International, Asia Pacific.
Intelligence, sign the
strategic cooperation
agreement in
October.
Coca-Cola helps heat Utah homes
As part of its drive for sustainability, Swire Coca-
Driving success through AI
Cola, USA is sending expired and damaged product
Swire Coca-Cola has teamed up with artificial
to Utah’s first anaerobic digester, which opened
intelligence pioneer, RetailEye Intelligence, to introduce
earlier this year in Salt Lake City. The biodigester
image recognition technology at its service outlets
accepts organic matter such as solid food waste
across Mainland China. This technology enables the
and liquefied organic waste from Utah businesses
collection of real-time data and analysis of in-store
and breaks it down to produce biogas, which is
Swire Coca-Cola operations in the China market, helping to provide
Zhejiang celebrated then converted into pipeline grade natural gas
30 years of operations information on consumer purchasing trends and
(biomethane) and used to power local households.
with senior enabling the company to fine-tune its marketing and
management and local The residual nutrient-rich solid matter is
government officials. operations accordingly.
Swire Coca-Cola, meanwhile used as a fertilizer by local farmers. For
USA delivers Swire Coca-Cola, the initiative means the company
waste product
to the Utah can outsource recycling of its waste at little cost,
biodigester. producing a win-win result for both the business
and the environment.
ISSUE 01 / 2020 ISSUE 01 / 2020
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NEWSWIRE BEVERAGES & FOOD CHAIN I MARINE SERVICES BEVERAGES & FOOD CHAIN I MARINE SERVICES NEWSWIRE
James Finlay opens in Guizhou Chefoo launch Swire Oilfield Services
October saw the official opening of Finlays’ new refined offer supply-chain transparency and real-time origin CNCo’s latest new building, Chefoo, moves into Mexico market
tea production facility at Sinan, in Guizhou, in south- traceability. was officially launched on 16th In September, Swire Oilfield company that has been operating
western China. At a total investment of US$16.97 million, October at Guangzhou Wenchong Services (“SOS”) announced a for over 36 years and has been
the 23,535 square-metre site processes tea for both the Finlays is also working closely with its small-to- Shipyard. Chefoo is the second strategic partnership agreement established in Mexico for a decade;
domestic and international markets and aims to achieve medium-scale suppliers, to encourage them to meet vessel in a series of four new with Whittaker Engineering, for the the company provides a range of
an annual output of more than 18,000 tonnes within five internationally recognised standards, including both 2,350 TEU container vessels supply of offshore containers and engineering services to the oil and
years. Good Agricultural Practices and Good Manufacturing being built as part of CNCo’s fleet equipment to support the growing gas sector, including fabrication,
Practices certification. The company is committed to expansion and tonnage renewal energy market in Mexico. Whittaker paint and blasting. The partnership
Finlays is building its supplier base across China, with investing in innovation and education to support local initiative. Featuring a modern and Mexicana will offer a full range of between SOS and Whittaker will
approximately 70% of the raw product to be supplied from tea-growing communities. The new facility will provide sustainable design, with enhanced Swire Oilfield Services DNV 2.7-1 offer customers a streamlined
Guizhou province – China’s largest tea producing region. a trusted route to global markets for Guizhou farmers, cargo capability, the 30,450 dwt certified units, including offshore service, with increased operational
The company is trialling mobile smart-technology covering assisting them to gain additional income. vessels are expected to broaden containers, baskets, waste skips efficiencies, and brings together
the entire production process from on-farm primary deployment opportunities within and tanks, to support increasing two established oilfield services
processing to factory-based secondary processing, to CNCo’s main trading areas. demand from international drilling companies in an exciting market.
campaigns across the region.
Whittaker Engineering is a privately
owned Scottish engineering
The new facility was
opened by Mr Fang
Ning, Vice Chairman of
the Chinese People’s
Political Consultative
New warehouse for Blue Diamond growers
Conference of Sinan United States Cold Storage (“USCS”) has celebrated the Retail Consortium food safety certification standards
County, Tongren City, opening of its second refrigerated warehouse at Turlock,
Guizhou Province, Finlays
and offers import/export services in addition to being
Group Managing Director, California. The 9.3-million-cubic-foot facility, known a registered handler within the California Organic
Guy Chambers, and Mr as “USCS Turlock North”, is dedicated to the receipt,
Ren Tinglu, President of
Program. The warehouse features relatively new
Tea Association of Sinan storage and shipping of Blue Diamond brand almond refrigeration technology: an enclosed and temperature-
County, Tongren City, product ingredients, including a wide range of almonds,
Guizhou Province (fourth
controlled receiving and shipping dock with 16 doors, to
to sixth from left). almond powders, flours and oils. ensure quality of the almond products. USCS currently
has 10 California locations, including sites in nearby
Completed in October, the facility has two rooms and Sacramento, Tracy, Fresno and Bakersfield.
Powering up coffee productivity Recycling partnership 40,500 pallet positions. The location meets British
Aspen Beverage Group, a subsidiary of James Finlay, In 2018, the China Navigation Company (“CNCo”) joined USCS Turlock
North serves
has celebrated the completion of its new 65,000 forces with the Secretariat of the Pacific Regional as a dedicated
square-foot production facility at San Antonio in Environment Programme to establish the Moana location for Blue
Diamond’s domestic
Texas. The latest expansion will significantly increase Taka Partnership (“MTP”), to remove recyclable waste and international
the company’s coffee production capacity and, in from the Pacific Islands. Under the provisions of customers.
particular, will enhance its capabilities for cold brew, their Memorandum of Understanding, CNCo provides
which is one of the coffee industry’s most rapidly containers and ocean freight on a pro bono basis,
expanding segments. The investment will enable Aspen shipping island nations’ recyclable scrap to countries
to continue its fast-track growth in the production of with effective and sustainable recycling facilities. The
beverage extracts and concentrates for leading brands MTP shipped more than 14 tonnes of plastic from Fiji and
and retailers in the US, Asia and Europe. It will also 24 tonnes of heavy scrap steel from Samoa to Brisbane
offer significant manufacturing job opportunities in in 2018. This public-private partnership is seen as the
San Antonio – one of the USA’s fastest-growing cities. way forward to address critical waste management
Finlays acquired 100% of Aspen in 2017. issues in the Pacific Islands, in order to reduce marine
pollution and protect fragile ecosystems.
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NEWSWIRE TRADING & INDUSTRIAL AWARDS & RECOGNITIONS NEWSWIRE
The road to low emissions Sustainability goals
Vogue Laundry has invested over Swire Pacific has maintained its “AAA” rating from MSCI “AAA” sustainability rating in 2019. Its large-scale mixed-
HK$6 million in upgrading its ESG Research, recognising its ongoing efforts to develop its use project, Taikoo Place, has also won the Certificate of
vehicles to Euro VI standard. By businesses along sustainable lines. The company was also Excellence in the Environmental Stewardship category at
the end of last year, nine vehicles, included as a constituent stock in the FTSE4Good Index the International Facility Management Association’s Asia
ranging in size from nine tons to Series, the Dow Jones Sustainability Index Asia Pacific, the Pacific Awards of Excellence.
11 tons (about 30% of Vogue’s Hang Seng Corporate Sustainability Index (“HSCSI”) and
fleet), had been upgraded. The new the Hang Seng (Mainland China and Hong Kong) Corporate Swire Properties’ Science-Based Targets (“SBT”) have
vehicles generate close to 90% less Sustainability Index in 2019. been approved, making the company the first developer
emissions and have been issued from Hong Kong and Mainland China to establish long-
with an Environment-friendly Meanwhile, Swire Properties was the only company from term decarbonisation goals that are in line with the
Commercial Vehicle Certificate Hong Kong and Mainland China to be listed on the Dow Paris Agreement. The SBTs aim to reduce Scope 1 and 2
by the Environmental Protection Jones Sustainability World Index for the third consecutive greenhouse gas (“GHG”) emissions (i.e. direct emissions
Department. The transition towards year. The company ranked eighth in 2019 out of 23 top-tier from the company’s activities and indirect emissions
a low-emission vehicular fleet real estate developers from around the world and was No. from electricity purchased and used) by 35% and 52% per
is testament to the company’s 1 in Asia. Swire Properties was also named Global Sector square-metre by 2025 and 2030 respectively, from a 2018
commitment to reducing its Leader in the Other (mixed-use development) category baseline. They also aim to reduce indirect Scope 3 GHG
environmental footprint. in the Global Real Estate Sustainability Benchmark emissions generated by downstream leased assets and
("GRESB") and retained the highest possible "GRESB 5 capital goods by 28% and 25% respectively per square-
Stars" rating. Locally, the company topped the HSCSI for metre by 2030.
the second consecutive year and maintained the highest
Vespa launches
On 5th September, Taikoo
Motors’ subsidiary, Yuntung Outstanding annual reports
Motors, launched the new Swire Pacific’s 2018 Annual Report won the Bronze Award
Vespa LX FL model in the in the “General” category in the Hong Kong Management
Taiwan market. By introducing Association’s Best Annual Reports Awards, announced in
bold new colour schemes to November. The report was commended by the panel of
the brand’s classic silhouette, adjudicators for its well-balanced presentation and clear
the eye-catching new model is use of charts that facilitate easy understanding. Meanwhile,
expected to prove popular with Swire Properties’ 2018 Annual Report was commended (Left to right) Deputy
Director, Singapore
young customers. for its clarity and conciseness. The Best Annual Reports National Youth
Orchestra, Pang Siu Yuin,
Awards scheme encourages the publication of timely, Director, Development &
From 27th September to 20th accurate, informative and well-presented annual reports for Partnerships, Singapore
October, Yuntung operated a shareholders, employees and the public. Symphony Group, Peggy
Kek and JS&S (S.E.
pop-up Vespa store as part of Asia) Director, Peter
Taipei Fashion Week SS20. The Making art accessible Langslow.
event included fashion shows, John Swire & Sons (S.E. Asia) Pte.
forums and exhibitions, and Limited has received a Friend of the Arts
provided the perfect opportunity award from the National Arts Council of Singapore.
to showcase Vespa’s heritage of The award is the highest national accolade given to
style and innovation in a vibrant individuals and organisations that have contributed
setting. significantly to arts development in Singapore. John
Swire & Sons (S.E. Asia) is a major sponsor of the
Singapore Symphony Orchestra (“SSO”), and has been
funding the Swire-SSO ticketing scheme since 2013. By
providing students and young people with subsidised
tickets, the scheme aims to make classical music more
accessible through SSO subscription concerts and
performances.
ISSUE 01 / 2020 ISSUE 01 / 2020
14 15
NEWSWIRE AWARDS & RECOGNITIONS AWARDS & RECOGNITIONS I IN THE COMMUNITY NEWSWIRE
Cathay Pacific Group celebrates multiple award wins SPO honoured
In November, Cathay Pacific Airways was named as one of Swire Pacific Offshore (“SPO”) has won the Excellence (“SRS”) Manpower Recognition Award, at the 2019 SRS
the top five airlines in the world by AirlineRatings.com – a in Offshore Support Award at the 2019 Lloyd’s List Asia Forum organised by the Maritime and Port Authority of
worldwide safety and product rating website. Judged by a Pacific Awards ceremony, held in Singapore in October. Singapore. SPO was recognised for its commitment to
panel of editors from seven leading industry publications, The awards are organised by renowned shipping journal, providing career development opportunities for local
the AirlineRatings.com Airline Excellence Awards 2020 ranks Lloyd’s List and are part of the Lloyd’s List Excellence marine professionals, through its provision of cadet
the top 20 airlines in the world according to major safety and in Shipping Awards – the maritime industry’s flagship berths to Singaporeans, active participation in manpower
government audits, as well as 12 key criteria that include awards programme. Meanwhile, in November, SPO programmes and deployment of Singaporeans in maritime
fleet age, passenger reviews, profitability, investment rating, was presented with the Singapore Registry of Ships operations.
product offerings and staff relations. In addition to being ranked
amongst the top five in the world, Cathay Pacific was named
Best Long-haul Airline in Asia. The airline has won multiple
awards from Airlineratings.com in previous years, including
Best Business Class in 2013 and 2015 and Best Asia/Pacific
Airline in 2016.
The Cathay Pacific Group won two further awards at the 2019
Business Traveller China Awards, held in Beijing in the same SPO’s Managing
month. Marco Polo Club, the group’s loyalty programme, took Director, Peter
Langslow, receives the
the “Best Frequent Flyer Programme” award, while Cathay Excellence in Offshore
Dragon was named “Best Airline Economy Class”. Since 2005, Support Award from
Lloyd’s List’s Senior
Business Traveller China magazine has been asking its readers Correspondent,
to vote annually on the best service providers in the travel and Singapore, Ms Tan
Hwee Hwee.
hospitality industries.
Award-winning blend
James Finlay Kenya (“JFK”) has
won multiple awards at the Tea
Industry Gala Awards 2019, which
took place in Nairobi in October. The
Remembrance Day
award ceremony was hosted by the
Representing the Swire
Agriculture and Food Authority Kenya
group, Tom Owen,
– Tea Directorate. JFK struck gold in
Cathay Pacific’s Director
several categories in the Speciality
People, attended the
Manufacture Awards, as well as
The triumphant Remembrance Day
first, second and third position for its
JFK team ceremony at the Cenotaph
at the Tea instant teas from Saosa Factory. JFK
Industry Gala in Hong Kong on Sunday,
was also recognised as the overall
Awards 2019. 10th November, paying
winner in value adding, highest export
tribute to the fallen of the
growth, and highest number of export
First and Second World
markets.
Wars and other conflicts.
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16 17
NEWSWIRE IN THE COMMUNITY IN THE COMMUNITY NEWSWIRE
Partnership for cultural heritage
conservation
Steamships Trading Company was a major
sponsor of the 2019 Hiri Moale Festival – a major
annual event in Papua New Guinea’s capital
that showcases Motu Koita seafaring culture
Eat sustainably
and highlights epic trading voyages of the past.
Steamships presented a 100,000 Kina cheque as The Swire Group Charitable Trust (“Swire Trust”) – the group’s The Trust has been supporting ADM Capital Foundation
part of its sponsorship to fund the construction of platform for altruism – works closely with local and regional (“ADMCF”), an environmentally-focused organisation that
a traditional lagatoi: the iconic vessel with a claw- NGOs to support their philanthropic initiatives. One of the is working to promote marine conservation, since 2015. In
key missions of the Trust is to help safeguard fragile marine Hong Kong, efforts have concentrated on encouraging the
like sail that is the festival’s centrepiece. The two-
ecosystems and restore fisheries in Hong Kong and Mainland growth of a sustainable seafood market. Hong Kong has
day festival took place in September and included
China. Asia is home to some of the richest, most diverse and one of the highest per capita seafood consumption rates
activities such as Vanagi (canoe) races, the arrival Steamships Chief productive fisheries in the world. But resources are declining fast in the world and is the tenth largest importer of seafood
of the lakatoi and the Hiri Hanenamo competition Operating Officer,
due to excessive and destructive fishing practices, pollution and globally by value – importing 90% of its needs. Yet the vast
Rupert Bray (left),
(crowning of the Festival Queen). Steamships has presents the cheque coastal development. majority of seafood consumed is not sustainable, legal or
a longstanding relationship with the Motu Koita to Motu-Koita regulated.
Assembly Chairman,
people and is committed to honouring its close Dadi Toka.
ties with the community, supporting cultural In 2016, ADMCF launched the consumer website,
events and preserving its rich traditions. Choose Right Today https://www.chooserighttoday.
org, which provides advice on what it means to buy
sustainably, understanding eco labels, species to avoid,
and where to eat seafood that has been caught or farmed
responsibly. The following year, Swire Trust helped to
fund Safeguarding Seafood for our Future, a Hong Kong
R U OK? seafood industry symposium co-organised by ADMCF and
In September, the Kalari division of Swire Mining Logistics Two R U OK? “champions” were allocated at each Kalari local NGO, Teng Hoi. This event led to the establishment
Industrial held a series of mental health awareness and site to assist in organising activities during the week. of the industry-led Hong Kong Sustainable Seafood
inclusion activities in support of the R U OK? initiative Initiatives included introducing channels for staff to seek Coalition (“HKSSC”) in January 2018. HKSSC has drawn
in Australia. With the mission of encouraging people to up a Voluntary Code of Conduct on Responsible Fish
help and organising group sessions where staff were
and Seafood Sourcing, setting minimum standards for
connect with and support each other – especially those encouraged to open up and share their personal stories
sourcing seafood responsibly and providing common,
who are struggling with life’s problems – R U OK? is a and experiences. unambiguous language for seafood marketing. Its vision
national day dedicated to raising awareness of depression, is for consumers to be able to trust that seafood in
mental health issues and suicide prevention. restaurants and supermarkets across the city is legal,
“Conversation traceable and sustainable.
could change a
life” – one of the
key messages of The Swire Trust is committed to providing support for
Kalari’s R U OK? HKSSC. Ultimately, we hope to see the coalition drive
initiative.
positive change in stakeholder habits all along the food
chain, in order to create a sustainable seafood market
in Hong Kong that can serve as a model for industry-led
reform across China.
For further information about the project or the Swire
Trust, please contact swiretrust@jsshk.com.
ISSUE 01 / 2020 ISSUE 01 / 202018 19
INSIDER INSIDER
Contributing value to China
On the occasion of the 70th anniversary me on recent visits to Beijing, Shanghai existing businesses as well as in new invest in new aircraft for Cathay Pacific to Kong airport as the leading international
of the founding of the People’s Republic and Shenzhen. And it was also evident in areas – and I hope we’ll have some exciting facilitate future growth, new routes, and a hub in Asia, and through our property
of China, Swire News took the opportunity the outpouring of national pride at the 70th news to announce soon. Meanwhile in strengthening of the international hub at Our strategy will business which is the largest provider of
to have a chat with Merlin Swire, anniversary events. I was privileged to Shanghai, we are constructing our latest Hong Kong International Airport (“HKIA”). Grade-A office space on Hong Kong Island.
Chairman of John Swire & Sons (H.K.) attend the State Banquet at the Great Hall retail development Taikoo Li Qiantan, And the great work that Swire Properties be to continue
Limited, about the group’s plans for of the People on the 30th September and which is due to open in late 2020, and has done in transforming Taikoo Place to increase our Hong Kong’s GDP may now only be 2.7%
of China’s but the multiplier effect is
increased investment on the Mainland,
in support of China’s high level of
the parade and shows on 1st October. A
deeply memorable experience.
which together with Taikoo Hui in Jing’an
district will give us a great footprint in the
into Hong Kong’s premier decentralised
workplace destination will not end. We
investment in tremendous. In that sense Hong Kong’s
opening up. city. Our Coca-Cola franchise business is opened One Taikoo Place in 2018. Two China’s domestic economy is already deeply integrated with
2019 marked the 70th anniversary of
China’s GDP growth has slowed recently,
and there are also many geopolitical
growing stronger than ever after franchise
expansion, and the business has recently
Taikoo Place will open in 2022, and there
will be more to come beyond that.
economy, to the Mainland. But the Greater Bay Area
(“GBA”) concept provides a tremendous
the founding of the PRC. In your opinion, uncertainties in the world. How will that established a China headquarters in bring high quality opportunity for Hong Kong to create
what has been the biggest change in
China since then?
affect Swire’s overall strategy in China?
There are certainly many geopolitical
Shanghai Pudong. In summary, I’m excited
to imagine what our China business will
What is your view about China’s high
level of opening up? What role does
services, products, new industries and new jobs for Hong
Kong people both in Hong Kong and in
The transformation from a largely rural uncertainties in the world. But China look like in five years’ time – I think it will Swire play in the process? and experiences Guangdong – particularly in technology,
and agricultural economy to one in which
there is an urban middle class of 400
remains the engine of global growth, and our
strategy will be to continue to increase our
be much broader and much stronger.
And no doubt the number of the group’s
We have found the China market to
be very welcoming and open to our
to Chinese tourism, and entertainment. We really
need to grasp that opportunity, and in
million with tremendous spending power. investment in China’s domestic economy, employees in the Mainland will have grown businesses. I think our role – which should consumers doing so Hong Kong can also contribute to
It’s an astonishing transformation. And to bring high quality services, products, and well beyond the 37,000 we see today. be the role of all foreign companies in the faster growth and quality development
in China today visitors can’t help but feel experiences to Chinese consumers. China – is to work with local companies of Guangdong.
that they are seeing a society at ease But we also employ 42,000 people in and governments to try to raise the quality Swire has been present in Hong Kong.
with itself, and with confidence in the We are currently working on lots of Hong Kong, and our growth strategy there of life and quality of jobs for Chinese Throughout that time we’ve been a How does Swire position itself in the
future. That sense has been palpable to investment opportunities in China – in our remains unchanged. We will continue to people. The challenge for us is to always committed investor and corporate GBA?
be bringing something new, innovative citizen through all of Hong Kong’s ups First, our goal is to improve the connectivity
and useful to China. and downs. In the late 19th and early between the GBA and the rest of the world.
20th centuries we made huge capital We want to make it as easy and seamless
I think we did that with HAECO Xiamen in investments in the Taikoo Sugar Refinery as possible for residents of Guangdong
the 1990s where we created from nothing and Taikoo Dockyard, and that period was province to travel to HKIA and fly on Cathay
in Xiamen an aircraft engineering and the origin of our strong CSR credentials Pacific to destinations all over the world. The
maintenance industry which now employs – we built modern housing, health clinics, new hard infrastructure in the GBA is helpful
5,600 people in Swire businesses and a schools, swimming pools and other in that regard. We are also working hard to
further 1,100 people in aviation related recreational facilities for our staff. In grow our network. In the last two years, the
businesses that have grown up following particular, we remained 100% committed Cathay Pacific group has launched flights
Taikoo’s lead. I also feel proud of the to Hong Kong during the uncertain period to 14 new destinations including Nanning,
place-making work Swire Properties between the Joint Declaration in 1984 and Jinan, Cape Town, Brussels, Washington DC
is doing, particularly with its Taikoo Li the resumption of sovereignty in 1997 – and Seattle, etc.
developments – creating distinctive continuing to invest heavily in Hong Kong
destinations on a human scale for aviation and property throughout that Second, some of our divisions have a
socialising, eating, shopping. And Swire period. strong existing presence in the GBA: Swire
Coca-Cola is constantly innovating to bring Coca-Cola has a long established presence
high quality beverages of all types and Today, I think Hong Kong’s strength and throughout Guangdong. Swire Properties’
calorie ranges to the consumer – we now depth as a financial services centre, first commercial project in China, Taikoo
sell 22 beverage brands and sub-brands with a common law system, continues Hui, was in Guangzhou and we will continue
in China – and brand Coca-Cola itself to grow and continues to provide a exploring development opportunities in the
represents only 23% of our total volume. completely crucial role for the Chinese GBA. But I’d like us to do more, particularly in
economy. Swire’s mission in Hong Kong Shenzhen. And I see the GBA as the perfect
Merlin Swire What is your view on the integration of is essentially to support Hong Kong in market for us to experiment in new sectors,
at UNION, the Hong Kong’s economy into the Mainland? performing this role for China – through and adjacencies to our current businesses.
Opposite House
in Beijing. What is Swire’s position in Hong Kong? our aviation businesses, which for over That is a key strategic focus for us.
This year marks the 150th year that 70 years have been working to grow Hong
ISSUE 01 / 2020 ISSUE 01 / 202020 21
CENTRE STAGE CENTRE STAGE
Our facility at Xiang’an
Airport is testimony to that
commitment and a vote of
confidence in the future of
Xiamen
Biggest one-time gross investment However, Gaoqi Airport cannot expand further to
HAECO established a subsidiary at Xiamen in 1993, cater for increased traffic. The local municipal
and began operations in 1996. Originally known government therefore took the decision to build
as TAECO (Taikoo (Xiamen) Aircraft Engineering a new airport on an island at Xiang’an, which is
Company), the company rapidly developed from a 40-minute drive from Gaoqi. Constructed to 4F
a modest aircraft Maintenance Repair & Overhaul standards, the highest international benchmark, the
(MRO) service provider into a comprehensive provider airport is poised to become one of China’s major
of aircraft engineering and maintenance solutions, airports in the region.
servicing airlines from around the world.
The relocation offers HAECO Xiamen a remarkable
“I believe the original plan in 1993 was to build two opportunity, as Summit explains, “The scale of the
hangars at Xiamen’s Gaoqi International Airport, business dictates that moving the operation over to a
but between 1996 and 2011, HAECO eventually built new site requires big investment. Providing airframe
six hangars as a result of organic growth,” explains services for the Cathay Pacific Group and third-
Summit Chan. party customers from Japan, Europe, the United
States, and China is still the bread and butter of the
The new facility will HAECO Xiamen now boasts a portfolio of airframe company, and we remain a market leader in this core
feature advanced services, including aircraft maintenance, structural competency.” To cope with this workload and future
technology and and cabin modifications, passenger-to-freighter growth, HAECO has designed a new hangar facility
green design that
A flying
will maximise conversions, and line services at 13 airports across for Xiang’an Airport that will feature an optimised
efficiency, reduce Mainland China. It offers cabin completion services for layout and incorporate the latest digital technology
environmental impact
and bring benefits for
private jets, and also operates its own certified build- and innovations to maximise operational efficiency.
customers. to-print aircraft parts manufacturing facility, as well It is expected to bring major benefits for HAECO
start as a large technical training and examination centre.
The company’s success laid the foundation for a
Xiamen, as well as to its customers.
Moving towards greater efficiency and
cluster of aviation services businesses. In 2008, the sustainability
HAECO Group undertook a major diversification into HAECO Xiamen’s technical capabilities at Gaoqi
adjacent businesses, opening a GE engine overhaul developed organically: from initially focusing on
shop and a landing gear shop at Xiamen; this was servicing Boeing 737s and 747s, the company now
HAECO Xiamen has unveiled plans to relocate its entire operations to a followed by a composite shop in nearby Jinjiang, the has capability to handle practically any aircraft type
following year. These investments turned HAECO into and engine configuration from the Boeing and Airbus
state-of-the-art facility at Xiamen’s new Xiang’an International Airport, the biggest aviation industry service provider in these families. Starting ‘from scratch’ at Xiang’an presents
due to open in late 2023. The new facility, which will represent the cities. HAECO with the chance to plan a new facility that is
specifically designed to offer flexibility and efficiency
largest single gross investment the HAECO Group has ever made, will Since its establishment, HAECO Xiamen has in dealing with the complexity and diseconomy of
dramatically transform the company’s operations. It will also reaffirm completed over 3,400 aircraft inputs for its airline scope that is a factor of serving multiple fleet types
customers, including 480 cabin modification projects. for customers around the world.
HAECO’s commitment to investing in Mainland China and contributing to Its facility at Gaoqi Airport is currently the largest
the development of the region’s burgeoning aviation industry. Swire News single MRO site within the HAECO Group – which, The new hangar will include 12 wide-body inner
as a whole, ranks a global second in the industry, bays, two of which will be equipped for segregated
talks to Summit Chan, HAECO’s Group Director Corporate Development
as measured by airframe services workload. In aircraft painting, and six narrow-body mid-bays,
and Chairman of HAECO Xiamen, to learn more about the significance 2018, HAECO Xiamen completed 281 aircraft inputs, offering a similar footprint and capacity to the
of this new investment. generating 4.1 million man-hours of airframe services existing facility at Gaoqi. The new hangar will feature
work. back-to-back, nose-in bays, a central-spine design
ISSUE 01 / 2020 ISSUE 01 / 202022 23
CENTRE STAGE CENTRE STAGE
to facilitate logistics and resource sharing, and a twin Better services for airline customers analyse defects – not just record them”, enthuses
taxiway to allow for the efficient movement of aircraft. HAECO Xiamen is also trialling a range of initiatives Summit. “We are also looking at robotic painting of
These features will help to shorten turnaround times that will utilise advanced technology. One example is aircraft parts. With the new facility, we will be able to
and give better on-time performance, providing the use of data analytics. Mr Chan elaborates: “When integrate the hangar design with these technologies,
better value for customers. The free-standing hangar we rectify maintenance issues, a lot of useful data and they will be enablers for improved performance
structure – will boast one of the longest spans in the about the aircraft is generated. Data analytics can standards and reduced aircraft maintenance ground
world – will maximise space available to house the allow customers to anticipate maintenance issues to times, which will benefit our customers.”
wide range of aircraft types it will handle, thereby better inform their fleet maintenance planning.”
offering greater flexibility to cater to customers’ The company continuously reviews its operations to
maintenance schedules. Another initiative is the use of drones fitted with improve safety and quality, and be best-in-class in
high-definition cameras to enhance the accuracy terms of operational efficiency; Centres of Excellence
“At the new airport, our staff can look forward and efficiency of aircraft inspections. Equipped with are recognised for lean processes and these
to working in a state-of-the-art hangar facility geo-fences and anti-collision sensors, drones are elements are top-of-mind in planning for the new
that incorporates advanced technology and already being used to carry out post-maintenance facility. HAECO Xiamen’s frontline staff are trained by
environmentally-friendly features”, says Summit. checks. In addition, augmented reality smart glasses Japanese instructors and encouraged to brainstorm
An array of features have been integrated into the will enable HAECO’s engineers to access technical and develop their own ideas for operational
facility’s design to optimise energy efficiency and data remotely and to communicate more effectively, improvements under a Quality Control Circle
minimise carbon emissions. Solar panels will be while automated guided vehicles and smart lockers programme. An end-to-end process optimisation 4,600 people. Practically all the senior managers are HAECO Xiamen’s
technical training
installed on buildings with flat roofs, and solar films will form part of a new digital warehouse and logistics project has recently been completed to lay the local and many of them joined HAECO Xiamen at the centre provides
on hangar roofs are being evaluated; together, they infrastructure. Over the long term, these technology- foundation for a new Enterprise Resource Planning company’s inception,” notes Mr Chan. a comprehensive
could generate up to 30% of the facility’s power assisted operational initiatives will help the company (ERP) system to be in place prior to the move to the range of aviation
maintenance
consumption. Other features include a smart Building become more competitive and will add value for new facility. Over the past 10 years, HAECO Xiamen’s technical courses and training
Management System, intelligent lighting control and airline customers. training centre has delivered over 250,000 student- services.
a chilled-water air conditioning system, as well as While moving to the new airport presents a once-in- courses to both internal and external students,
facilities for the on-site treatment of waste water, gas And HAECO Xiamen is looking even further ahead: a-lifetime opportunity to build in optimisation and contributing not only to the development of the
and volatile organic compounds. The facility aims to “In the future, when the technology is more mature, hardware, Mr Chan notes that moving a big set of company’s own workforce, but to the aviation industry
attain Gold LEED certification. artificial intelligence will probably help our engineers operational activities is always going to be hugely in Mainland China as a whole.
challenging. “It takes a lot of planning to make sure
that it will transition well. Once the local government As well as building the new airport at Xiang’an, the
approves the preliminary designs for the new facility, city of Xiamen is investing heavily in associated
the design firm’s architects and engineers need to infrastructure, including the construction of six
produce construction drawings – and at present we subway lines. The new airport will also lead to the
are looking at around 3,500 of them. Then there is the development of a high-speed rail link, as well as more
tendering process for contractors and suppliers, and connectivity by road, with new highways, bridges and
project management of the construction itself. And tunnels – enlarging its catchment area by providing
when construction has been completed, the facilities better access from the surrounding counties for
will need to undergo audits by various regulatory people and freight.
authorities from around the world. This is the
process we are managing from now until the target HAECO Xiamen has grown alongside the city where it
completion date at the end of 2023,” he says. has operated successfully for almost two-and-a-half
decades. Says Summit Chan: “Xiamen is an excellent
The city of choice place in which to base our operations. It was voted
Since HAECO set up shop in Xiamen in 1993, local the second-most liveable city in China according to
government has been very supportive in facilitating a number of considerations, including air quality,
the growth of the company – turning this east coast transport infrastructure, talent availability, economic
Summit Chan, city into a strategically important hub for the country’s vitality, and more. We are committed to Xiamen’s
Chairman of
HAECO Xiamen, burgeoning airframe maintenance industry. continued development into a regional aviation hub
says the new in Mainland China. Our facility at Xiang’an Airport
facility is the
opportunity of “Initially, the company brought about 200 staff from is testimony to that commitment and a vote of
a lifetime to Hong Kong to start up the business. At the same time, confidence in the future of Xiamen.”
optimise design. we recruited local graduates. Today, we employ over
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