SwireNews - John Swire & Sons - John Swire & Sons ... · of the staff for their hard work in making the office move a very smooth one. The new office, which occupies the 33rd and

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Maisie Shun Wah Editor

Charlotte Bleasdale Deputy Editor

Cindy Cheung Manager

Barry Chu Manager Design/Production

The Swire group is a multi-national, 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 divisions: property, aviation, beverages, marine services, and trading & industrial. John Swire & Sons Ltd., headquartered in the UK, is the parent company and corporate co-ordinator of the group. In addition to its controlling shareholding in Swire Pacific, John Swire & Sons Ltd. operates a range of wholly-owned businesses, including deep-sea shipping, cold storage, off-shore and road transport logistics services and agricultural activities with main areas of operation in Australia, Papua New Guinea, East Africa, Sri Lanka, the USA and the UK.

Please send material to the Editor, GPO Box 1, Hong Kong, or email us at [email protected]. For pictures, we welcome prints, colour slides or computer graphics in JPG format (500dpi and 20cm x 16cm), and digital photos taken by cameras with 8 Megapixels or above.

Swire News is published in Hong Kong, by the Group Public Affairs Department.

Copyright©2010

Features

Out & About 24

China Care: Delivering the gift of education 20

HAECO celebrates 60 Years 12

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New wire

Port Moresby townhouse developmentSteamships Trading Company has signed an agreement with China Railway Construction Group (CRCG) to develop a complex of eight premium quality townhouses in Papua New Guinea’s capital city, Port Moresby. Each three-

bedroom unit will have a total area of 340 square metres and enjoy expansive Coral Sea views along the Ela Beach coastline. The complex, to be built in two blocks of four units with car parking, is scheduled for completion by the end of 2011. CRCG is currently undertaking construction of the Windward Apartments Stage II development for Steamships.

Giant shoes to fill

Retiring Alex Fraser Group MD, Jamie McKellar, offers some final words of advice to his successor Pete Murphy, at the company’s North Laverton recycling site. Jamie and Pete have worked in the business together for well over a decade and have shared leadership of the company for the last 12 months, but Pete knows he will be stepping into some giant shoes: in his 38 years with the company, Jamie has overseen Alex Fraser’s growth from a three-man operation to an employer of over 200 people. In the mid-80s, Jamie took the pivotal decision to move into construction and demolition (C&D) waste recycling – then unknown in Australia. “It just made sense. We were busy demolishing 15 acres of buildings at the Vickers Ruwolt site in Richmond in inner-city Melbourne. This project alone generated 50,000 tonnes of concrete that either needed to be discarded or recycled. We finally thought we would give recycling a go.” Giving it a go was not cheap and required significant investment in plant and equipment, but Jamie was confident it would pay off. Alex Fraser, which was named Business of the Year by the Wyndham City Council in August, is now Australia’s largest recycler of C&D materials, with an annual production capacity of four million tonnes a year and plans for expansion within Australia and perhaps internationally. Jamie McKellar will continue to keep an eye on activities as a member of Alex Fraser’s Board of Directors, but is looking forward to quieter times ahead: “I will be available for golf, lunch and most likely some fishing,” he says.

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New Hong Kong headquarters The group in Hong Kong celebrated the move to its new headquarters at One Pacific Place with a “baisan” ceremony on 28th September – an auspicious day according to the lunar calendar. Swire Hong Kong Chairman Christopher Pratt and his fellow Directors officiated at the ceremony, which was followed by a roast-pig cutting and a traditional lion dance to bring good fortune to the new premises. Mr. Pratt thanked all of the staff for their hard work in making the office move a very smooth one. The new office, which occupies the 33rd and 34th floors of One Pacific Place, was the former headquarters of Swire Properties before it relocated to One Island East in April this year.

Senior Management changesCathay Pacific Airways Chief Executive, Tony Tyler, is to leave the airline in March next year, after being recommended to succeed Giovanni Bisignani, retiring Director-General and Chief Executive of the International Air Transport Association (IATA). Mr. Tyler will be succeeded by the airline’s Chief Operating Officer John Slosar. In a message to Cathay Pacific staff, Mr. Tyler said that with his retirement age looming, the prospect of a further period of involvement in the aviation industry was an attractive proposition he found impossible to resist. He added that the excitement of accepting his new challenge at IATA is tinged with sadness at the prospect of leaving the company and the colleagues with whom he has worked for 32 years. Cathay Pacific Chairman Christopher Pratt said: “Our congratulations go to Tony on being recommended by the IATA Board for this very important position. IATA

Closer Beijing tiesCathay Pacific and Swire Properties were among the companies selected to participate in the 14th Beijing-Hong Kong Cooperation Symposium held in Hong Kong in November. The symposium aimed to showcase various examples of cooperation between the two cities, with a number of project representatives on hand to sign investment agreements in the presence of the Mayor of Beijing, Guo Jinlong. Martin Cubbon, Chief Executive of Swire Properties, signed a Letter of Intent to confirm Swire’s investments in Sanlitun Village and INDIGO, as well as to indicate interest in future investments in

Chaoyang District, Beijing. Cathay Pacific Chief Executive Tony Tyler and Chief Operating Officer John Slosar took to the stage to sign an agreement to form a strategic partnership with Vance Info Technologies, a leading IT consultant and solutions provider in Mainland China, to develop outsourced IT services capabilities.

is fortunate to be gaining a man of his experience and calibre.”

Tony Tyler joined the Swire group in 1977 and has been a Director of Cathay Pacific for the past 14 years. John Slosar joined the group in 1980 and was appointed Chief Operating Officer of the airline in 2007. He is also the Chairman of Swire Beverages where he worked for nine years before rejoining the Aviation Division of Swire Pacific.

Swire Properties launches AZURASwire Properties Limited has launched “AZURA”, its latest residential project at 2A Seymour Road, Mid-Levels West. Offering 126 units ranging in size from 1,650 to 2,100 square feet, the 50-storey property is one of only a handful of residential projects in the highly sought-after Mid-Levels West area, and is close to the Central business district as well as to Soho’s cultural and entertainment neighbourhood.

The development features three exquisite penthouses with rooftop and private pool and three unique apartments on the podium level with flat roof space. Each AZURA apartment features a “Kitchen Plus” design, offering the rare luxury of a traditional Chinese kitchen combined with a contemporary open pantry for drinks or an intimate dinner. 51 units were made available for sale at the launch, at an average price of HK$22,288 per square foot.

(Left to right) Celebrating the opening are JS&S Hong Kong Directors J.B. Rae-Smith, Tony Tyler, Peter Kilgour, Christopher Pratt, Augustus Tang and Ian Shiu.

Tony Tyler John Slosar

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Harvey Nichols comes to Pacific PlaceSwire Properties and Dickson Concepts have signed an agreement to introduce a new Harvey Nichols flagship store to Pacific Place. The new store will take up the 83,000 square feet of space currently occupied by Hong Kong Seibu, after the latter’s lease expires in June next year, and it will open for business in October 2011. One of the world’s leading luxury fashion chains, Harvey Nichols has a reputation for offering the best fashion, accessories and beauty selections and is a frequent winner of industry awards for visual merchandising and creative advertising. To ensure consistency with Harvey Nichols stores elsewhere, Hong Kong owner Dickson Concepts will work in conjunction with Harvey Nichols UK to oversee development and delivery of the store and its merchandise, while London-based interior design company, FOUR IV, has been commissioned to design the new flagship. FOUR IV has already created award-winning luxury stores for Harvey Nichols in Edinburgh, Manchester, Istanbul and Ankara. The store will complement the new look and upgraded facilities at Pacific Place, which has been transformed by a HK$2 billion contemporisation project, begun in 2007.

PCCW Tower stake sold Swire Properties has announced that it has sold a 50% stake in PCCW Tower at TaiKoo Place to Grosvenor, an international property development, investment and fund management group. Swire Properties will retain a 50% interest in the office tower. With a lettable area of 544,000 square feet, PCCW Tower is one of 13 office buildings developed and owned by Swire Properties at Island East, Hong Kong’s largest commercial hub.

Major product upgrade by Cathay PacificCathay Pacific has unveiled a number of new product and service enhancements, as part of its ongoing investment in the continued development of Hong Kong as one of the world’s leading international aviation hubs.

The airline has recently unveiled The Cabin, its latest passenger lounge at Hong Kong International Airport (HKIA), designed by London-based architectural firm Foster + Partners. The Cabin is located by Gate 23 on the airport’s central concourse and is Cathay Pacific’s fourth departure lounge at HKIA after The Wing, The Pier and G16; The Arrival lounge caters to passengers flying into Hong Kong.

Described as “contemporary, refreshing and dynamic”, The Cabin is separated into five zones: The Reception, The IT Zone, The Deli, The Health Bar, and The Relaxing Zone – and the design features a blend of warm wood, bamboo, white marble and dark granite that builds on the airline’s existing lounge palette. The Cabin employs state-of-the-art technology to ensure passengers are kept in

touch and entertained. New dining concepts include a delicatessen where made-to-order hot sandwiches, fresh antipasti and salads are available, and The Health Bar – a reworking of Cathay Pacific’s popular Long Bar concept, which also serves freshly squeezed juices and hot or cold Chinese herbal teas.

The Cabin is open to First and Business Class passengers, Silver and above Marco Polo Club members and Sapphire and above oneworld members. With the opening of The Cabin, Cathay Pacific will begin a phased renovation of its flagship lounge, The Wing, beginning in the fourth quarter of 2010.

Meanwhile, Chief Secretary for Administration of the Hong Kong SAR, Henry Tang, was Guest of Honour at a gala event held at the Hong Kong Convention and Exhibition Centre on 7th December to showcase Cathay Pacific’s new flat-bed Business Class seat and its new uniform for frontline staff.

The new wing-backed seat has been carefully designed to maximise living space, while quickly converting into a bed that is one of the longest and widest provided by any commercial airline. The infinitely adjustable seats are angled to give a perfect view through the windows, yet

designed to cocoon passengers in their own private space, which boats the latest in widescreen inflight entertainment systems. The first aircraft to feature the new Business Class product will be an Airbus A330-300 that is planned to enter service on the Sydney route in March. By February 2013, all 30 Boeing 777-300ER and 20 long-haul A330-300s in the fleet are expected to have the new product.

Guests at the launch event, dubbed “Light Up the Sky”, were also treated to a fashion show featuring the new Cathay Pacific uniform, which will be worn by all cabin crew, airport staff and other frontline staff from the third quarter of next year. The new uniform, once again created by renowned Hong Kong designer Eddie Lau, retains signature features such as red as the principal colour, the brush-wing logo, stand-up collars and long skirts for senior frontline staff. New fabrics with a mechanical stretch have been used on a number of uniform items to provide more comfort and ease of movement while still meeting stringent occupational health and safety requirements.

Cathay Pacific CEO Tony Tyler described the new product enhancements as “Quite a package that has been put together for the most important people in our business – our passengers.”

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Latest Volkswagen and Škoda launched in TaiwanTaikoo Motors Taiwan Group has launched several new models onto the market over the past few months. In August, Beldare Motors launched the Volkswagen Jetta 1.6 with a press conference near Taipei City and a half-day test-drive event for the trade press. In October, Liberty Motors launched the Škoda Yeti. This stylish and spacious new SUV features advanced engine technology, fuel efficiency and the highest safety rating from Euro NCAP. Prior to its official launch, the Yeti received glowing reviews in the Taiwan media and on the Internet and more than 100 customers placed orders for the Yeti during the pre-sale period.

Meanwhile, in line with its recognition as “Importer of The Year 2009 – After Service”, Bel Air Motors has launched a “No.1 for U” campaign, featuring a “500 Speed-up

New vessel type for SPOSwire Pacific Offshore has placed an order with Samsung Heavy Industries for its first wind farm installation vessel, to be operated by subsidiary, Swire Blue Ocean. The vessel is scheduled to be delivered in June 2012 and the agreement with Korean shipbuilder Samsung provides for an optional second vessel for delivery in 2013.

The Swire Blue Ocean vessel design is an advanced specification focusing on safety, efficiency and reliability. The vessel offers a significantly improved operating weather window, crane capability of 1,200 tons, DP2 (Dynamic Positioning) station keeping and a transit speed in excess of 13 knots. There is single cabin accommodation on board for 111 people, and the vessel will have the ability to operate in water

depths of up to 75 metres. With a usable deck area in excess of 4,000 square metres and a total jackable weight of not less than 8,400 metric tons, the vessel offers great flexibility in the carriage and installation of offshore wind foundations and turbines of all types and sizes.

“The Swire Blue Ocean vessel is an important and timely innovation for the industry as it moves into deeper waters

and more challenging operations,” says Lars Blicher, General Manager and Director of Swire Blue Ocean. “With more than 30 years’ offshore experience and a strong commitment to safety, Swire comes to the market confident they will deliver the high quality product, performance and service levels that offshore wind customers are looking for.”

Service”. The importer of Volkswagen light commercial vehicles has set itself the target of providing customers with a satisfactory status report on progress with servicing of their vehicles in just 500 seconds (eight and a half minutes). The campaign impressed VW principals so much it was posted on the VWCV After-sales E-report and has since been adopted as a service campaign worldwide.

Outstanding leadersSwire Pacific Chairman Christopher Pratt was selected Business Person of the Year and Tony Tyler received the Executive Award at the prestigious 21st Hong Kong Business Awards jointly organised by the South China Morning Post and DHL. The organisers commented that “what has been interesting in this year’s Awards is how the economic crisis revealed many outstanding businesses in Hong Kong, businesses which have successfully maintained or strengthened their competitiveness, and serve not only as leaders in their industries but also as role models for the business community as a whole.”

Five years on topReaders of Wall Street Journal Asia have, for the fifth year in a row, given the thumbs-up to Cathay Pacific, placing the airline top in a poll of Hong Kong’s most respected companies.

The common factor linking the diverse range of companies that make up the Swire group is their dedication to operational excellence.

In recent months, group companies and individuals have garnered a number of prestigious industry awards for best practice – many highlighting our

shared commitment to sustainable business practices.

Fairtrade award Global fresh flower importer Omniflora has won the Fairtrade Award for Business and Industry from German Fairtrade labelling organisation, TransFair. The award is given to organisations and individuals who show an exemplary commitment to fair trade. The James Finlay subsidiary is committed to providing healthy and fair working conditions and wages to its farm workers and out-growers in East Africa, enabling workers to improve their own living conditions and finance social projects like créches and schools.

Swire Industrial Services CEO David Anderson (right) and Operations Manager Tony Elrington (third from right) receiving a Safety Recognition Award at the Australian Industry Group’s annual dinner. The materials handling company has recently implemented a new hazard identification process that scores hazards based on consequence, likelihood and exposure. An Enterprise Business Risk assessment has also been conducted across the company, identifying that the six highest risks to the business relate to safety. This has resulted in specific, targeted plans being developed to ensure controls are in place to mitigate the risks and regular reviews are conducted to ensure that the controls are performing correctly.

Christopher Pratt at the award ceremony with Po Chung, Chairman Emeritus, DHL Express (Hong Kong) Limited, and Jeffrey Alam of the Noble Group.

Safety first

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Employer of choiceSpecialist bulk and low-density storage and distribution provider Kalari has recently been awarded an Australian Business Award for Recommended Employer. The Australian Business Awards are a national programme honouring organisations that demonstrate the core values of business excellence, product excellence, sustainability and commercial success in their respective industries through an established series of business and product award categories. Kalari’s award acknowledges the company as an industry leader in human resource management. Kalari competed against 144 other companies in this category and demonstrated that it had engaged with its employees and added value in areas that employees identify as being important. The company illustrated its culture as open, inclusive and in support of its core values of safety, teamwork, reliability, respect, customer service and innovation.

Sustainable management recognisedFestival Walk has won the prestigious Grand Award in the Green Building Award 2010’s Existing Buildings – Hong Kong & Asia Pacific category for continuous efforts in incorporating environmental considerations into its daily operations.

Presented jointly by the Hong Kong Green Building Council and the Professional Green Building Council, this industry-led award recognises excellence in sustainable planning, design, construction and management of buildings. The jury applauded Swire Properties’ overall sustainability strategy implemented at the Festival Walk complex, which includes a 210-shop mall and an office tower. This follows the development’s earlier success in March when it beat other projects worldwide to win “Client of the Year – Low Carbon Operation Award” from The Chartered Institution of Building Services Engineers in the UK.

Swire Properties has invested HK$40 million on various energy efficiency enhancement initiatives in the past ten years, including replacing chiller plant and installing energy-efficient light fittings. As a result, the complex has achieved an energy saving of over 30%, which equates to a reduction of over 14 million kWh annually.

Swire Properties was the first Hong Kong developer to provide free energy audits to its office tenants at Festival Walk in 2008, helping them to identify energy saving opportunities and reduce their carbon footprint. As a result, over 150,000 kWh have been saved on tenants’ premises. Festival Walk is also at the forefront in waste management, from recycling fluorescent tubes, electronic waste and cooking oil to bio-friendly food waste management. It was

the first commercial complex in Hong Kong to attain the BEAM Platinum rating in 2006 – the highest rating in the widely recognised scheme.

As part of its long-term energy management strategy, Swire Properties has set a 10-year energy reduction plan for Festival Walk and its other core buildings, outlining over 300 initiatives that will enhance energy performance. By 2020, the company expects to reduce its overall energy consumption by 20%.

Dragonair named as Excellence BrandDragonair has been identified as a “2010 Asian Excellence Brand” by popular news and current affairs magazine Yazhou Zhoukan. The honour was bestowed on the 13 most influential brands from five countries and territories in Asia: Hong Kong, Mainland China, Taiwan, Singapore and Malaysia. Nominees from a range of consumer and business enterprises were selected by Yazhou Zhoukan readers and members of the business elite earlier this year, with 100 influential brands shortlisted. Dragonair was voted “World’s Best Regional Airline 2010” in the Skytrax World Airline Survey earlier this year.

Colleagues from Swire Properties – from left to right: Jason Chan, Building Engineer, Michael Wu, Assistant Technical Manager, Guy Bradley, Chief Operating Officer, Daniel Chang, Technical Manager, Fiona Shiu, Senior Portfolio Manager and Cary Chan, Head of Technical Services and Sustainability.

Design wins praiseFollowing on from his success in winning the Crystal Cabin Award in 2009 with his innovative Paperclip Armrest concept, James Lee, Assistant Manager, Cathay Pacific Loyalty Programmes & Customer Information System, has recently won another accolade. The dual-level armrest design that allows two arms to share the same vertical space without clashing has won Singapore’s Red Dot Award 2010. Being one of the leading international product design award schemes, the Red Dot award attracted more

than 3,200 submissions from around the world. For his entry, James refined his original Paperclip design to make it look more stylish, and invited two Cathay Pacific colleagues to pose with the prototype. James says he is very interested in design, and has countless new ideas in his head which he hopes to eventually find time to bring to fruition. His winning entry will be on display at the Red Dot Museum in Singapore for one year.

CEO James Tong with the awards.

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Electric carsSwire Properties has purchased two Nissan LEAF electric vehicles for its transport fleet as part of its initiatives to reduce its carbon footprint. The two new vehicles will enter service in February 2011 as replacements for vehicles in the company’s existing fleet. The measure will lead to a 70% reduction per vehicle in greenhouse gas emissions and cleaner roadside air quality with zero tailpipe emissions in comparison with the equivalent petrol cars. Cary Chan, Head of Technical Services & Sustainability comments: “As a leading property developer and one of Hong Kong’s major corporations, we recognise that we can make a significant difference by minimising our carbon footprint and influencing our stakeholders to do the same. Replacing some of our existing vehicles with electric cars lets us reduce our environmental impact in a visible way, which we hope will encourage others to follow suit.” In addition to being one of the first property developers in Hong Kong to acquire electric vehicles for its operations, Swire Properties has also installed eight electric vehicle charging facilities in its shopping mall car parks at Pacific Place, Cityplaza, Festival Walk and Citygate.

FLY Greener Cathay Pacific and Dragonair have purchased 30,000 tonnes of carbon-emission reductions from carbon offset service provider Climate Action (www.climateactio2n.com) for the airlines’ FLY greener offset programme. Both airlines regularly add to their inventory of carbon offsets as the previous year’s supply is retired and this is the third time new offsets have been purchased since the programme was launched in 2007. Cathay Pacific and Dragonair were the first Asian airlines to introduce a carbon offset programme, offering the offsets on a no-profit basis to passengers wishing to offset their carbon emissions.

The new project portfolio consists of a set of 95 small “run-of-river” hydropower stations in Chongqing, Guizhou, Sichuan and Yunnan provinces; a group of 23 wind turbines in Shandong, and a “run-of-river” hydropower project in the Pearl River Delta region of Guangdong – the first time the airlines have collaborated on a project in Hong Kong’s neighbouring province. All three projects have been verified in accordance with the Voluntary Carbon Standard, an internationally accepted carbon standard, and were rigorously vetted to ensure they produce real, quantifiable and permanent reductions in carbon emissions. The projects were also chosen for their added social and environmental benefits, such as reducing local air pollution, enhancing productivity of local farms, and providing power and jobs to local communities. More information is available at www.cathaypacific.com/flygreener or www.dragonair.com/flygreener.

Cooled by the sunSwire Coca-Cola Hong Kong is assisting The Hong Kong Polytechnic University in the development of a solar-powered air-conditioning system for vehicles. The innovative system, which has been developed by Professor Eric Cheng of PolyU’s Department of Electrical Engineering in conjunction with Green Power Industrial Limited, has been successfully road-tested on one of the company’s delivery trucks. The Coca-Cola truck carries a solar energy panel and battery storage system on its roof, supporting a standalone electric air-conditioner. Lance Wright, General Manager of Swire Coca-Cola Hong Kong, comments: “Swire Coca-Cola

All Swire shopping malls in Hong Kong are now fitted with electric vehicle chargers to facilitate this mode of transport in Hong Kong.

believes sustainability is fundamental to the way we conduct business and support to this solar energy system research project is a prime example of the company’s commitment to a sustainable future.”

Green Leadership In November, 15 Mainland Chinese university students visited Swire companies in Hong Kong to learn best practices in Corporate Sustainability. The 15 were finalists in the Swire Beverages-sponsored Green Leadership Programme, focusing on water conservation. Swire Beverages teamed up with Hong Kong-based not-for-profit Hong Kong Environmental Protection Association (HKEPA) to design the programme, which aims to promote and inspire green leadership in universities across Mainland China. While in Hong Kong, the students visited Swire Coca-Cola, Swire Properties, Cathay Pacific and HAECO to learn best practices from the Environment teams from each company. For many of the students, it was their first visit to Hong Kong and they were keen to take back what they learned on their trip to share with friends and families back home.

Finding new ways to lessen our impact on the environment and, in particular, to reduce the resources we consume, is a vital part of Swire’s

long-term sustainable development strategy. Swire companies have recently implemented a number of new best-practice initiatives and have been actively

encouraging ‘green’ thinking amongst the wider community.

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On the morning of 17th November over 1,000 guests gathered at Hong Kong

International Airport to celebrate the 60th anniversary of the Hong Kong

Aircraft Engineering Company. At the ceremony, held in one of the company’s

vast hangars, HAECO’s Chairman Christopher Pratt spoke with pride of the

company’s development into a world-class aeronautical engineering group,

while Guest of Honour, Hong Kong SAR Government’s Chief Executive,

Donald Tsang, spoke of HAECO’s important contribution to the city. It was

a scene parent company Swire probably never envisaged 60 years ago when

HAECO was first formed.

HAECO – A Hong Kong

60 Years in the MakingSuccess Story

Feature

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In the lean and hungry years immediately following World War II, Swire was determinedly clawing its way back to profitability and with the group’s characteristic instinct for growth markets, had already identified the aviation industry as an area of great potential.

At the time, Swire had absolutely no experience in the aviation field, but was confident that its engineering expertise gained in the Taikoo Dockyard could be transferred to aircraft repair and maintenance. It is clear that HAECO’s “can-do” spirit, enthusiastically captured in the company’s unofficial motto “Mo Mun Tei“ – “no problem” in Cantonese – was present from the very start.

The dream to break into the aviation industry soon became reality, with the formation of the Pacific Air Maintenance & Supply Company (PAMAS) in 1947. HAECO (known at the time as HAEC) officially came into existence three years later when PAMAS merged with Jardine Air Maintenance (JAMCO). A company newsletter of the time jested that the new name was something of a disappointment to staff, who had hoped “the mixture of Jam and Pam would bring forth the concoction HAM (Hongkong Air Maintenance).”

Looking back from the viewpoint of today’s sophisticated aviation industry, some might have seen this rather “make-do” foray into the world of aircraft maintenance as a gamble, but the gamble paid off. HAECO was an instant success. Within its first decade of operation, the company had trebled its workforce and its turnover, and in 1965, HAECO was floated on the Hong Kong stock market.

Since then, HAECO has grown into one of the world’s leading aeronautical engineering groups. It is ranked among the top five Maintenance, Repair and Overhaul (MRO) facilities in the world in terms of airframe man-hours. In Hong Kong, HAECO now operates out of three hangars, occupying over 46,000 square metres and capable of housing up to 13 aircraft at a time. The company serves 89 airlines, operating around the clock to handle over 250 transits a day. It offers a full spectrum of services ranging from its core airframe maintenance and line maintenance services to cabin reconfiguration, freighter conversion, engine overhaul services, component services, fleet technical management and technical training.

So what is the secret behind HAECO’s success? Clearly HAECO benefits from Hong Kong’s position as a leading aviation hub. Hong Kong is at the heart of Asia, a gateway to Mainland

China and within five hours’ flying time of half the world’s population. The city also boasts a world-class airport; anyone who travels regularly or relies on airfreight for their business will agree that Hong Kong International Airport (HKIA) stands head and shoulders above most. Then there is Hong Kong’s strong home carrier, Cathay Pacific. Cathay Pacific Engineering Director Christopher Gibbs remarks: “Both Cathay Pacific and HAECO have gone from strength to strength and each one is the indispensable business partner of the other.”

The relationship between HAECO and HKIA is very much a two-way street, because HAECO’s services form an essential part of the airport’s offering, helping to maintain its leadership position. Commercial Director Summit Chan points out: “Building on the strong foundations of its home at HKIA, it is HAECO’s quality service, operating experience and technical expertise that set the group apart from other MROs.” Despite fierce competition both in Hong Kong and across the region, HAECO continues to be the MRO of choice, building customer loyalty in airframe maintenance. This is also demonstrated by the fact that many line maintenance customers postpone minor repairs and cabin tasks, centralising them on arrival in Hong Kong.

Mr. Chan is keen to stress that the company owes its biggest debt of gratitude to its staff. It is their resourcefulness and their commitment to quality, to efficiency and to getting the job done no matter what that has come to define HAECO. These are very much “Hong Kong” characteristics and HAECO is extremely proud to call itself a Hong Kong company. Conceived and born here, the company has grown up with the city, weathering its ups and downs. Currently, both Hong Kong and the aviation industry at large are experiencing a strong resurgence, following the recent economic downturn.

(continued)

Engine test unit: then... and now.

By that time, Swire had also acquired a controlling interest in Cathay Pacific Airways, a tiny but growing regional operator that would become – and remains to this day – HAECO’s favourite customer, shaping the formation of the company as it responded to the airline’s evolving needs.

So in 1950, HAECO was born, a shoestring maintenance company operating out of a glorified shed at Kai Tak Airport. The technical team worked on aircraft such as the turboprop Sandringham, which made the 13,301 kilometre trip to the UK in a leisurely five days. Engine checks were conducted using a test unit mounted on the back of an old truck and repairs were made with what limited resources were available in the post-war years.

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When considering the future of aviation, thoughts turn naturally to Mainland China: as China’s appetite for travel grows along with its economy, the country’s aviation industry has seen double digit growth year on year. China is investing heavily in building its own aircraft and sales are predicted to be strong; the need for technical support will certainly grow accordingly. HAECO’s Chief Operating Officer Kenny Tang explains: “This presents a unique opportunity for a world-class facility like HAECO. We are perfectly positioned to benefit from this growth.”

HAECO’s Xiamen subsidiary TAECO was formed in 1996. The company is now in the process of building its sixth hangar in Xiamen’s Gaoqi International Airport in response to a massive rise in demand. “We are now looking at other strategic locations in Mainland China, such as Chengdu and Sichuan. We are also looking to

build on recent joint ventures such as Taikoo Engine Services Xiamen, Taikoo Spirit AeroSystems and Taikoo Sichuan Aircraft Engineering. The aim of these joint ventures is to enable us to answer all the needs of the airlines, current and future. Our vision is to offer our customers a truly one-stop-shop and to establish a leadership position on the Mainland.”

It would seem that the rapid industry growth in Mainland China is creating a bright future for HAECO,

however, CEO Augustus Tang is keen to point out expansion on the Mainland is not their sole focus: “We have a truly international client base and we value our customers from all over the world. Just as Swire always takes a long-term view when it comes to business development, avoiding the temptation to make quick gains, we are keen to avoid putting all our eggs in one basket.”

HAECO employees, many of whom have been with the company for decades, often speak of the family-like atmosphere. This atmosphere, which bonds HAECO staff, is often quite literally created by families. There are many examples of relatives who work alongside each other and even of multiple generations who have committed to a career with Hong Kong’s leading MRO. One family in particular has become well-known throughout the company and beyond. Their fame is due partly to their infectious enthusiasm for life, partly to their dedication to HAECO and partly to the fact that with three generations of employees, they have borne witness to the entire history of the brand.

Grandpa Mak joined HAECO in 1950 – the company’s official first year of business. His elder son, S.K., joined him 18 years later, followed by his younger son S.S. All three worked in the Sheet Metal Department where S.K. and S.S. still work to this day. When the boys first began their apprenticeships, their father was responsible for their training. “He was tougher with us because we were his sons,” recalls S.K., “but that’s how it should be.”

Grandpa Mak retired from the company over 20 years ago, but his links to it remain strong.

Accompanied by his wife, he is a regular visitor to the HAECO Veterans’ Club – the only one of its kind in Hong Kong. There he takes part in a range of recreational activities and chats to the colleagues he worked alongside for almost 40 years. Since his retirement, Grandpa Mak’s space at HAECO has been filled by his grandson, Marco, who joined the Line Maintenance Division, marking the Mak family’s third generation with the group.

The Mak family reflects much of the spirit that has made HAECO so successful as a company. S.K. Mak in particular embodies HAECO’s dedication to ongoing learning and advancement. Having left school at 16 with limited qualifications, he has since acquired an MBA from the University of Western Sydney and completed several management courses offered by prestigious American universities such as Yale and Harvard. Today S.K. is the Section Head of

The HAECO Family

the Sheet Metal Department and is also actively involved with several committees.

Despite their obvious love for HAECO, each member of the family will admit that life at the company can be challenging. The time-critical nature of the work means that there is never a quiet moment and that the pressure is always on to achieve the highest standards in the shortest timeframe.

However, when asked if they would recommend a career at HAECO to jobseekers, the response from the Mak family is an enthusiastic “yes”. “You have to take a long-term approach and remember that luck alone cannot bring you what you want – you have to work. At HAECO, if you work hard, you will be successful,” explains S.K. Then, with a glance at his newly married son, he adds: “I will be recommending HAECO to my grandson soon.”

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Cultivating the Next GenerationIf the Mak family harbours hopes of future generations joining the HAECO family, they are not the only ones. Recruitment for junior positions has been a perennial problem for the company, first becoming an issue during the brain drain leading up to Hong Kong’s handover to Mainland China in 1997 and worsening with the growing demand for technically trained staff.

To cope with this problem, HAECO has long adhered to a policy of recruiting local talent and training them in-house. HAECO offers a series of unique aircraft maintenance trainee schemes which lead to recognised qualifications, as well as equipping participants with the soft skills needed for future positions of responsibility. Nevertheless, finding apprentices is not always easy.

Despite its size and reputation, HAECO has always remained low-key in terms of its image and marketing. CEO Augustus Tang believes this has not done the company any favours when it comes to recruitment.

That said, recruitment issues are certainly not exclusive to HAECO. In fact, the International Air Transport Association (IATA) predicts a global shortage of approximately 400,000 aircraft maintenance personnel by 2018. Faced with such daunting figures, HAECO has launched a massive recruitment drive. Direct recruitment

Feature(continued)

efforts this year have included a slew of job ads and a very visible presence at job fairs and career talks. The company has also developed vocational courses in cooperation with institutions such as the Vocational Training Council, the Labour Department, the Education Bureau and the Hong Kong Institution of Engineers, all aimed at providing basic training and generating interest in the aviation industry.

Possibly the most original initiative was a series of events involving scores of secondary school students visiting the HAECO hangars at Chek Lap Kok. Organisers of the programme hoped to impress the students with up-close views of the giant aircraft and the charged atmosphere, inspiring a passion for aviation that will hopefully stay with them upon graduation.

So why is recruitment proving so challenging? In an ironic twist, the recovering economy that is fuelling HAECO’s growth and the associated demand for more staff is also making it difficult to find technically trained employees. Most young people today are keen to find white collar jobs in smart, centrally-located offices, and there are plenty of options open to them.

By contrast, life for technicians at HAECO involves getting one’s hands dirty. Employees may need to work in confined spaces or out of doors in adverse weather conditions. Rostered schedules mean that working hours may be long and night shifts may be required. In addition, the workplace necessitates a long commute for many employees.

Compounding the issue is the fact that although HAECO is interested in recruits with a wide range of educational backgrounds, certain skills

and traits are considered essential. Firstly, candidates must have a reasonable level of English in order to understand the manuals. In addition, they must have a strong sense of responsibility, a rigorous awareness of safety and quality, a thirst for learning and, of course, an enthusiasm for the aviation industry.

So what does HAECO have on its side when it comes to attracting employees? Aside from a competitive compensation and benefits package, the main appeal is the opportunity for advancement. The company has created clear career paths and places great emphasis on training and development. It is company policy to fill senior positions from within wherever possible, and this is clearly reflected in the current hierarchy.

Maintenance staff also enjoy a great deal of job satisfaction. In a dynamic and rapidly growing industry, their efforts contribute directly to maintaining aviation safety and safeguarding the lives of hundreds of thousands of passengers and aircrew. Technical staff report feeling proud of their role, and rightly so; they are part of a leading MRO team at one of the best airports in the world.

The lack of new recruits is a serious problem, threatening both HAECO’s ability to grow, as well as the ongoing development of Hong Kong as a key aviation hub. Effectively communicating the benefits of employment at HAECO may be one of the biggest challenges the company is facing. However, everyone remains optimistic that HAECO’s “can-do” spirit will carry it through and that baby Mak will soon be climbing the ranks alongside hundreds of his peers.

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Feature

China Care: Delivering the Gift of Education

Imagine you are a ten-year-old orphan

living in rural China. Your home is

a mud hut without running water,

electricity or even furniture. Every

night you are plunged into cold and

darkness, and when you wake your

only thoughts are of surviving the day.

Education is a luxury that does not

even cross your mind.

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China Care Fund1993

22

(continued)Feature

Against this backdrop of hopelessness and deprivation, you are suddenly approached by a complete stranger. She treats you with kindness, offers you support and, amazingly, the chance to go to school. At first you do not believe her, but before long you are in a classroom listening attentively as a new world unfolds in front of you. This is the story of just one of the many poverty-stricken children that China Care has helped over the last 17 years.

The China Care Fund was first established in October 1993, when a group of volunteers led by Sister Agnes Law of the Sacred Heart Canossian School in Hong Kong identified a tremendous need for aid in China. Alongside the unabashed displays of wealth in bigger cities like Beijing and Shanghai, there lives a large population which subsists on just US$1 a day. As always, it is the children who suffer most and with no access to education, their fortunes are unlikely to change.

The desire to break this cycle was what compelled Sister Agnes and her group to venture into a relatively unknown world, bringing badly needed supplies to the remote regions of China. They envisioned an education for every child, regardless of wealth. They also hoped to give the relatively privileged people of Hong Kong the chance to get to know their motherland and to raise awareness of the difficult conditions experienced by many there. From these simple aims, the China Care Fund was born.

Since its inception, China Care has built 68 new schools as well as renovating many more existing ones. The charity also sponsors students from impoverished villages, in some cases providing for the entire school-aged population. For these children, an education opens a host of possibilities. It expands their knowledge of the world and of themselves, increases their self-confidence and, importantly, improves their job prospects.

Over the years China Care’s work has attracted the attention of a number of people, including present Director, Mr. Arthur Tso. Taking a break from his fast-paced life as a

Hong Kong solicitor, he accompanied Sister Agnes on one of her visits to China in 1998. His experiences there convinced him to join the organisation, and he has been actively involved ever since. “While we were visiting the villages, a sense of peace and calm settled over me,”

recalls Tso. “I felt content and happy, and that’s how it all started. I wanted to continue coming back.”

China Care has brought that same profound emotion to many others. An important pillar of Sister Agnes’ mission is to provide opportunities for the privileged youth of Hong Kong to interact with their less fortunate counterparts in China. “Living as they do in Hong Kong, our youth often fail to realise that the simple daily necessities we take for granted here are not so accessible across the border,” said Tso. “It is only by travelling to these remote and poverty-stricken regions in China that they are exposed first-hand to the difficult lives that have befallen young people who are in fact just like them.”

These eye-opening trips are made possible by donations from various Hong Kong institutions, among them Swire, who has a long-standing relationship with the charity. Twice a year, a group of 30 Swire staff and their children joins China Care for a four-day trip into the areas where the charity works. There is never any shortage of enthusiastic volunteers ready to seize the opportunity to embark on the journey of a lifetime.

Prior to their departure, the volunteers undergo extensive training, often conducted by Mr. Tso himself. The sessions cover what to expect and the social protocols that dictate what should and should not be done. During the trips, volunteers interact with the primary and secondary school

children and provide coaching on how to reduce the pressures of exams and of life in general. These encounters make the students feel supported and give them important contact with the outside world.

The impact of these trips can be great. “After each trip, I receive overwhelmingly positive feedback from the Swire employees,” explains Mr. Tso. “Most are deeply touched by what they see, never having imagined the conditions in the villages. It gives them a greater appreciation for their lives in Hong Kong and often instils a desire to do more.”

Since 2005 Swire Trust has sponsored 86 underprivileged students, dramatically changing their lives through its support. Staff are able to follow each child’s progress through letters and even visits. In the last five years, there have been many success stories to celebrate, and Swire is particularly proud of the achievements of one young woman, Mo Hong Dan, who has been accepted at the prestigious Harbin Medical School.

Such successes speak for themselves. Thanks to China Cares’ tireless efforts, more and more children are gaining access to formal education, while here in Hong Kong, supporters are gaining insight into the education system in China, as well as learning to treasure every opportunity to learn. Seventeen years on, Sister Agnes’ mission is being fulfilled one step at a time.

Li Wan Hai lost his right leg when he was knocked down by a container truck at the age of seven. He used to hop to school from his home on the hills, a journey which took him half an hour each way. Through the help of China Care and Swire staff, Li, now aged 15, was fitted with a prosthetic leg in Hong Kong last year.

A mural which Swire volunteers made with the children.

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a Professor Vivian Yam of Hong Kong University, a Swire Scholar when she did her PhD at HKU, has won the prestigious 2011 L’Oreal-UNESCO Women Scientist Award.

b Professor Kenneth Leung of HKU, a Swire Scholar who did his PhD at Glasgow University, is one of the awardees of the Ten Outstanding Young Persons Selection 2010 organised by the Junior Chamber International in Hong Kong.

c Horn player Natalie Lewis of the Hong Kong Philharmonic talks to J.B. Rae-Smith, Chairman of the Swire Philanthropy Council, at Swire Symphony Under The Stars, a free outdoor concert attended by over 15,000.

d Philip Herbert (right) of Cathay Pacific lays a wreath on behalf of the Swire group at the Cenotaph on Remembrance Day.

e Regina Hui of John Swire & Sons China visits a village in Qinghai where the Swire Trust supports 20 students to finish their senior high school.

f Guy Moore (left) and Christian Johansen, two of the swimmers who raised money for the Arts with the Disabled Association (ADA) last year, took part in the Half Ironman Marathon at Wiesbaden in August and raised more money for the Association.

g Tom Bellamy (left) of Cathay Pacific and Jamie Conlin (Swire Beverages) hiked for 43 hours and 44 minutes on the Kokoda Track and raised over HK$10,000 for a PNG charity that aims to improve literacy among underprivileged children.

h Lee Hin, a visually impaired artist of the ADA, performs at the Shanghai Expo’s Life and Sunshine Pavilion, the first pavilion for the disabled ever set up at a world expo.

a b c

d e f

g h

SwireNews - John Swire & Sons - John Swire & Sons ... · of the staff for their hard work in making the office move a very smooth one. The new office, which occupies the 33rd and

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