2nd issue 2011 - john swire & sons · cathay pacific has signed an agreement with boeing to...

2nd ISSUE 2011

30 S W I R E N E W S2 n d I S S U E 2 0 1 1

Newswire 1

Contents

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©2011

Features Out & About 28

Swire PNG Rainforest Study 18

Selling a 125-year-old Beverage 12

ArchivesCorporate Treasure Trove 24

1N E W S W I R E

Newswire

Finlay Targets ChinaXiamen James Finlay Trading Co. Ltd officially opened on 19th July. George Chan, Director and General Manager of Finlay Tea Solutions (HK) Ltd, Sally Henderson, General Manager of Xiamen James Finlay Trading Co. Ltd, and other Swire colleagues and business partners attended the opening ceremony.

Service UpgradeEarlier this year, Swire Shipping upgraded its North Asia service with additional calls at Papua New Guinea (PNG) ports. The service, which connects PNG with ports in China, Taiwan, Korea and Japan, as well as ports throughout the Pacific, has increased the frequency of its calls at Port Moresby and Lae from twice monthly to a market-leading three sailings a month and has also added a monthly direct call at Rabaul. The upgrade also sees the introduction of twice-monthly direct calls at Hong Kong. The use of self-geared, multipurpose tonnage on this service means Swire Shipping is now offering its clients a full range of options for the movement of break-bulk and containerised cargoes out of North Asia.

Australian Prime Minister, the Honourable Julia Gillard, expressed great interest in the processes that go into converting recycled glass into the sand that forms the basis for roading materials, when she paid a recent visit to Alex Fraser’s facility at Laverton, Victoria. Ms Gillard was given an open invitation to visit the facility, which is in her parliamentary seat, after congratulating Alex Fraser on winning Business of the Year in the 2010 Wyndham Business Awards. From left to right are: Alex Fraser CEO Peter Murphy, Jamie McKellar (retired CEO), Julia Gillard, Sam McKellar (Operations Manager, Alex Fraser Demolition), Bill Rothery (Chairman & CEO JS&S Pty), Rob McKellar (General Manager, Alex Fraser Demolition).

As a large trader of black and green tea with offices in most of the world’s major tea growing and drinking countries, Finlays attaches great importance to the Mainland China market for its position and scale in the tea world, and sees great opportunities in extending its tea trading network there. On the tea extract side, where Finlays is also a prominent industry player, Finlays will build on a close co-operation with Damin Foodstuff to develop sales in Mainland China and America.

Ms. Ottilie Cunningham, Tea Trader from Finlay’s London Office together with Mr. Chan and Ms. Henderson.

2 S W I R E N E W S2 n d I S S U E 2 0 1 1 3N E W S W I R E

Record SaleSwire Properties Limited has sold 100% of its Festival Walk shopping complex and office tower in Kowloon Tong, Hong Kong, to a wholly-owned subsidiary of Singapore-based real estate development, investment and capital management specialist, Mapletree Investments Pte Limited. The sale, for a cash consideration of some HK$18.8 billion, is Hong Kong’s largest-ever property transaction. Commenting on the sale, Swire Pacific Chairman, Mr. Christopher Pratt, said: “Festival Walk has been a significant asset in our property portfolio, and has contributed strongly to Swire Properties’ reputation as a leading blue-chip property investor and developer. An opportunity arose to realise the value of this investment. Sales proceeds will be applied towards the general working

capital requirements of Swire Pacific and will put it in a strong position to continue its major investment programmes. Swire Pacific remains committed to its long-term investment strategy and will continue to explore future investment opportunities in Hong Kong, Mainland China and elsewhere.” Mr. Pratt added that the sale price is an attractive one and fully reflects the high quality of the asset.

New Aircraft OrdersCathay Pacific has signed an agreement with Boeing to purchase another four 777-300ER passenger aircraft and eight 777-200 freighters. The 12 new aircraft are expected to be delivered between 2013 and 2016 and will be powered by General Electric GE90 engines. With these latest orders, Cathay Pacific now has a total of 97 new aircraft on its books for delivery up to 2019.

In July in Hong Kong, Swire Pacific Director Mr. Ian Shiu received two Chinese delegations. From Zhuhai, Standing Vice Mayor, Mr. Liu Xiaolong (pictured left), updated Mr. Shiu on the city’s recent developments, and encouraged Swire to explore investment opportunities in aircraft maintenance service and real estate in his city. Vice Mayor Wang Renzhou of Ningbo also appraised Mr. Shiu of the city’s latest developments where property development and cold chain logistics are seen as areas of strong potential growth.

The airline currently operates 22 Boeing 777-300ERs on key long-haul routes, with another 28 on order, and plans to retire older aircraft, including 21 Boeing 747-400s and 13 Airbus A340-300s, before the end of the decade as it progressively takes delivery of new-generation aircraft that will provide greater fuel and operating efficiencies.

The Boeing 777-200F is a new aircraft type for Cathay Pacific and will be used

on regional and European routes, replacing older, less fuel-efficient Boeing 747-400BCF Converted Freighters. For a typical 3,000 nautical mile trip, the 777-200F will burn 15% and 24% less fuel per payload tonne than the 747-400F and 747-400BCF respectively.

Mr. Christopher Pratt, Chairman of the Swire group’s three Hong Kong-listed companies, comments on the 2011 interim performance:

Swire Pacific Ltd.“The profit attributable to shareholders for the period was HK$23,951 million, HK$9,321 million higher than for the same period last year. Underlying profit which principally adjusts for changes in the valuation of investment properties and excludes the effect of non-recurring items decreased by HK$542 million to HK$4,378 million.

The results of Swire Properties in the second half are expected to continue to benefit from strong office and retail rental markets in Hong Kong.

2011 Interim Results

Swire Properties’ results will also benefit from the profit on the sale of Festival Walk. The businesses of the Beverages Division in Mainland China and Hong Kong are performing well. However, high raw material, fuel and energy costs will put pressure on margins. The outlook for the second half for Swire Pacific Offshore is positive while that of the Trading & Industrial Division is mixed.”

Cathay Pacific Airways Ltd.“Cathay Pacific reported a profit of HK$2,808 million for the period compared to a profit of HK$6,840 million for the same period last year. Our core business remained generally robust but increased jet fuel prices had a significant effect on our operating results. After an exceptionally strong 2010 in which we made record

profits, 2011 is proving to be more challenging. The outlook for the world economy is uncertain and a return to recessionary economic conditions would also affect demand and possibly average price levels. However, our financial position is strong and we remain in a good position to deal with increased operating costs and the economic uncertainty with which we are faced. We will continue to manage our finances prudently.”

Hong Kong Aircraft Engineering Co. Ltd.“The attributable profit for the period was HK$425 million, an increase of 25.7% from the same period in 2010. The outlook for the second half is mixed. Assuming continued growth

in the aviation industry, demand for HAECO’s heavy and line maintenance services in Hong Kong is expected to remain strong. Forward bookings for TAECO’s airframe heavy maintenance in the second half are weak and TAECO’s capacity utilisation is likely to fall following the opening of its sixth hangar. HAESL’s performance is expected to be adversely affected by continued delays in the supply of spare parts. The joint ventures in Mainland China are expected to continue to be adversely affected by weak demand.”

For the full results of these companies, please visit our websites:www.swirepacific.comwww.cathaypacific.comwww.haeco.com

Turnover

Profit attributable to shareholders

Earnings per share

A shares

B shares

Dividends per share

A shares

B shares

HK$M

HK$M

HK$

HK$

HK$

HK$

HK$

HK$

17,082

23,951

15.92

3.18

1.15

0.23

46,791

2,808

0.714

0.18

+13.2%

-58.9%

-58.9%

-45.5%

2,544

425

2.56

0.70

+33%

+64%

+64%

+15%

+24.2%

+25.7%

+25.7%

+55.6%

Results Swire Pacific Change CX Change HAECO Change


Third Runway of Critical Importance to Hong KongSwire has voiced its strong support for construction of a third runway at Hong Kong International Airport (HKIA), as a three-month public consultation began in early June on the two options for growth put forward by the Airport Authority Hong Kong (AAHK) in its HKIA Master Plan 2030. Option 1 proposes enhancing the capacity of the existing two runways, while Option 2 proposes the building of a third runway. Cathay Pacific, Dragonair and HAECO have all given public backing to Option 2, saying a third runway is the only viable way to ensure Hong Kong retains its long-term competitiveness as a financial, trading, logistics, tourism and professional services hub. The two existing runways are already so heavily used that finding takeoff and landing slots for additional flights is increasingly difficult and the airport faces saturation 15-20 years before the original blueprint forecast of 2040.

“Connectivity with the rest of the world has made Hong Kong what it is today, so we must be clear on how we can maintain and grow these linkages for tomorrow,” said Cathay Pacific Chief

Executive, John Slosar, pointing to the very real threat that HKIA now faces from rival “hub” airports in the region such as Bangkok, Singapore, Taipei and Seoul, and Shanghai, Guangzhou and Shenzhen in Mainland China – all of which are planning or undergoing expansion. Mr Slosar described Option 1, which would require further investment in apron and terminal facilities at HKIA, as at best “an expensive stop-gap”, which would only meet the estimated demand for air services in the medium term.

HAECO’s CEO Augustus Tang pointed to the “excellent job opportunities” afforded locally by the aviation industry, with HAECO alone now employing close to 5,000 staff. A total of some 65,000

people are currently directly employed on the airport island and an estimated 7.7% of Hong Kong’s total working population are directly or indirectly supported by the aviation industry; AAHK has estimated that the building of a third runway will increase direct employment at HKIA to 141,000 by 2030. Dragonair CEO James Tong said that with the Asia-Pacific aviation market set to overtake North America by 2014, Hong Kong was ideally placed at the centre of this sphere of growth.

Suggestions that capacity problems can be solved by better connectivity between HKIA and airports in the Pearl River Delta region or by directing traffic to neighbouring Shenzhen are complicated by the different immigration requirements, separate border controls and air services agreements of the two administrative

regions, according to a Cathay Pacific briefing paper on the debate. Shenzhen is likely to face capacity constraints around the same time as HKIA, while Hong Kong risks giving away its competitive advantage if it does not maintain its own airport with sufficient capacity to provide for the city’s economic growth. Meanwhile, the introduction of links such as the Guangzhou-Shenzhen-Hong Kong Express Railway will never take the place of direct air services to destinations on the Mainland from HKIA itself.

“This is one of the most important decisions Hong Kong has faced in many years,” said Mr Slosar, adding that with a 10-year lead time on building a new runway, there is no time to be lost.

Rapid Expansion for HAECO The month of June has seen some major enhancements to the HAECO group’s capabilities, with new extension facilities officially opened at Hong Kong Aero Engine Services Limited (HAESL) in Tseung Kwan O, Hong Kong and at Taikoo (Xiamen) Aircraft Engineering Company Limited (TAECO) and Taikoo Engine Services (Xiamen) Company Limited (TEXL) at Xiamen’s Gaoqi International Airport.

HAESL opened its Component Repair Centre of Excellence Phase V – a 13,500 square-metre expansion that features five of HAESL’s six Rolls-Royce Global Repair Services Centres of Excellence (CoE) for component repair under one roof – on 15th June; the engine overhaul specialist has also reorganised and expanded its Phase II

component repair facility. On 18th June, TAECO opened a new 45,790 square-metre hangar – its sixth – capable of accommodating two wide-body aircraft, and providing a 20% expansion in capacity. Meanwhile, on 30th June, neighbouring TEXL opened a new expansion facility enabling it to provide comprehensive engine overhaul capability on the GE90-100/115B engine series. The new extension includes chemical and mechanical cleaning, non-destructive testing lines and workshop areas that will enable GE90-100/115B module disassembly and component overhaul at piece part level. Earlier in the month, the company received an extension to its Part 145 Approval Certificates from the CAAC, EASA and FAA covering these capabilities and this certification means TEXL is currently the only GE Maintenance, Repair and Overhaul (MRO) facility

in the world - other than the Original Equipment Manufacturer – providing full GE90-100 series overhaul and test services.

These new developments reflect HAECO’s confidence that the next decade and beyond will see a rapid growth of the global aviation industry and, in particular, of air traffic around the Asia Pacific region, leading to an increasing need for efficient, quality airframe and aero-engine overhaul and repair services. They are part of the group’s overall strategy of building on its existing facilities in Hong Kong and Xiamen to create centres of excellence for aircraft engineering that will aim to become MRO “hubs” of choice for the world’s airlines.

Air China Cargo LaunchCathay Pacific and Air China jointly hosted a celebration in Beijing on 6th May to launch Air China Cargo (ACC). Air China has a 51% equity interest in ACC, while the Cathay Pacific Group has a 25% equity interest and 24% economic interest. The joint venture has commenced operations with nine Boeing 747-400 freighters, one of which is the first of four to be sold to ACC by Cathay Pacific as part of the agreement; the second began flying in ACC colours during June and the third and fourth will transfer in early 2012. With its principal operating base in Shanghai, ACC’s key markets will be North America, Europe and North Asia, with nine, 17 and 16 flights per week respectively to various destinations in each market in the 2011 summer schedule.

Cour

tesy

of A

AHK

A drum beating ceremony celebrates the opening of Hangar 6 in Xiamen.


SwireCokeOneChanging IT systems doesn’t sound like much of a milestone but for Swire Beverages it is part of a strategic initiative to drive greater standardisation of the processes across all its operations. The new IT system, SwireCokeOne, which is based on SAP, went ‘live’ in April in Hangzhou BC, Swire Beverages’ plant in Zhejiang province. This was the first stage in a carefully planned campaign to replace the existing – often locally developed – IT systems used by Coca-Cola’s Mainland bottlers, with a common platform that will drive improvements in efficiency and effectiveness, and allow Swire Beverages to achieve closer integration with large customers and suppliers. It also means participation with other Coca-Cola bottlers in the development of what is known globally as the “CokeOne” template,

which will help share best practices and lower long-term IT development costs.

“We have great people but we recognised that we needed better tools to help our processes become more tightly integrated: to fill gaps in some areas and reduce duplication in others,” explained Guy Chambers, Chief Operations Officer (Greater China) and Chairman of the SwireCokeOne Steering Committee. “SwireCokeOne is not an IT initiative: it is a new way of business for all of us.”

New “D” ClassSingapore-headquartered Swire Pacific Offshore Operations (Pte) Limited (SPO) has placed an order for four Havyard 844 XL, 17,850 BHP Anchor Handling Tug Supply Vessels. The first vessel is scheduled to deliver in June 2013, with the three subsequent vessels delivering between the third quarter of 2013 and second quarter of 2014. The vessels will be built by Singapore Technologies Marine Limited, the marine arm of ST Engineering. Swire Pacific Offshore currently has four “D” Class sister vessels on order from Drydocks World shipyard in Singapore, for delivery in

2012 and 2013. The vessels will have a continuous bollard pull in excess of 200 tons and are equipped with 500-ton winches. Built with Clean and Ice Class notations, the DP2 (Dynamic Positioning) anchor handlers will be ideal vessels to support the latest generation semi-submersible rigs operating in harsh, deep-water environments. With a large clear deck area and under-deck tank capacity, they will also be well suited for a wide range of other offshore applications.

SPO has subsequently awarded a £50 million contract to Rolls-Royce to supply advanced anchor handling systems for the four ST Marine-built vessels. The systems have been developed for the safer handling of large anchors on deck, such as the torpedo anchors used in the deep water oil and gas fields off the coast of Brazil, and are centred around a low-pressure hydraulic winch with a pulling capacity of 500 tons.

Driving Italian StyleSwire has re-entered the Hong Kong automobile market with a new Swire Motors Fiat/Alfa Romeo dealership, which saw its soft opening in July. With 35 years in the car market, principally in Taiwan, Swire sees demand for premium quality Italian cars offering the best in design, technological innovation and driving performance and will initially launch the Fiat 500 and Fiat 500C, followed by the Alfa Romeo Mito TCT transmission and Fiat 500 by Gucci.

Offstage for 30 Years, VESPA Returns to Taiwan At the end of April, Taikoo Motors Group subsidiary Yuntung Motors announced cooperation with the Piaggio Group of Italy to become exclusive distributor of Vespa scooters, genuine parts and accessories and branded merchandise in Taiwan. Four new flagship stores have been opened in Taipei and central Taiwan and a total of 11 stores are planned by the end of this year.

Yuntung is currently offering 125cc and 150cc

series S and LX Vespa models and plans to introduce the larger GTS 250 and GTV models in the second half of the year; the company is predicting that sales of the iconic brand, which has been absent from the Taiwan market for some 30 years, will exceed 5,000 scooters by the end of 2011.

The Transparent FactoryTo coincide with the launch of the new Volkswagen Phaeton SWB, Phaeton LWB and the customised Phaeton Exclusive in Taiwan, sole agent Beldare Motors has opened Phaeton Handmade Centres at its showrooms across the country. Modelled after Volkswagen’s famous transparent factory in Dresden and emphasising the manufacturer’s “handmade in Germany” approach to quality, these new information centres take customers through the design concepts and manufacturing processes that have gone into the new Phaeton models, before they enjoy a 20-minute test ride.

In April this year, Swire Industrial opened its Representative Office in Shanghai to explore cold chain logistics opportunities in Mainland China. Seen at the opening are Mr. Clement Lam, Chief Representative of the office, Mr. Christopher Pratt, Chairman of Swire Pacific, and Mr. J.B. Rae-Smith, Executive Director of the Trading & Industrial Division of Swire Pacific.


Best ManagedSwire Pacific has been voted Asia’s Best Managed Conglomerate in the magazine FinanceAsia’s Best Managed Companies Poll 2011.

Leadership in SustainabilityAlex Fraser Queensland has won the prestigious 2011 ClimateSmart Leadership award. The Premier’s ClimateSmart Sustainability Awards programme is the Queensland Government’s highest recognition of community and business leadership in sustainability, innovation and eco-efficiency. The award was for the work Alex Fraser Queensland has done in conjunction with the department of Transport and Main Roads in developing the Main Roads technical standard for recycled material in pavements. The new specification is expected to increase the use of these recycled materials by another 1.5 million tonnes per annum over the next two to three years.

Preferred SupplierFinlays Horticulture has won the Supply Chain Award in the 2011 M&S Plan A Awards, organised by leading UK chain, Marks & Spencer. The award recognises Finlay’s work in supporting Fairtrade vegetable development in Kenya, where the company has been building partnerships with individual farmers and small buying groups to source premium vegetables (green beans, baby corn, sugar snap peas) for more than 20 years, enabling many small outgrowers to develop successful businesses of their own. Finlays Horticulture was also runner up in the Leadership

Award, for its work on water efficiency and stewardship in the Lake Naivasha area and in the Exceptional HR Award, for its Ethical Trading Initiative supervisor training programmes in Kenya. Sustainability Director, Richard Fox, was given a special award recognising his “outstanding personal contribution” to water stewardship around Lake Naivasha.

Finlay Beverages has meanwhile won UK supermarket chain ASDA’s Private Label Supplier of the Year Award 2011. The award covers all ASDA Private Label categories, both grocery and non-food, and Finlay Beverages was commended for its “Chosen by You” products – in particular the

re-launch of its mainstream tea, which involved a new

and improved blend, whilst maintaining an affordable price point

for the ASDA shopper.

Top GunsUnited States Cold Storage’s facility at La Vergne, Tennessee, has won the Kellogg Company’s “Top Gun Award 2010” – its highest honour for warehouse partners. Kellogg executives commended the La Vergne team – who achieved second place in the Top Gun Awards in the three years prior to 2010 – for “never letting up” their focus on areas that needed improvement. In particular, La Vergne excelled in the areas of order management and OS&D (over, shorts and damage) – two areas that improve customer satisfaction. Said Vice President and GM Marlon Lucas, who oversees USCS’ La Vergne and Smyrna warehouses: “This year’s award reflects 100% team effort. It measures the warehouse, customer satisfaction and transportation. All departments must perform at a very high level to achieve success. The exciting thing about Top Gun is who we had to surpass to win it. Each year, our sister plants have raised the bar and this makes us all better.”

World’s BestDragonair has been voted “World’s Best Regional Airline” in the annual Skytrax awards for the second year running; the carrier was also named “Best Regional Airline Asia”. The World Airline Awards™ organised by UK-based research consultants Skytrax, are particularly significant because they are based on customer satisfaction. A total of 18.8 million airline passengers from more than 100 countries participated during the 10-month survey period. The survey covered more than 200 airlines and assessed customer-service standards across almost

Green CarsEach year the Taiwanese Government’s Environmental Protection Administration (EPA) commends 12 new car models for their environmental performance. This year’s Green Cars, selected from over 180 entries, included three Škoda models: the Škoda Fabia 1.2TSI, Škoda Octavia Combi 1.2TSI and Škoda Superb 2.0TDI – the first-ever diesel engine car to win a Green award.

In choosing the finalists to recommend to consumers, the EPA follows the SmartWay Certified standards set by the US EPA and the Green Cars have to meet a range of criteria, including low noise, low fuel consumption and low pollution.

Škoda importer Liberty Motors’ General Manager, Martin Tsai commented: “All Škoda models offer excellent performance, low fuel consumption and spacious interiors, so you don’t have to sacrifice driving pleasure while driving a Green Car.”

Environmental ExcellenceSwire Resources has been awarded a Certificate of Merit in the Hong Kong Awards for Environmental Excellence (HKAEE) – Retail Sector Awards. Launched in 2008, the HKAEE has been recognised as one of the most prestigious award schemes in Hong Kong, encouraging companies to adopt green management practices and giving them an opportunity to benchmark their efforts against those of other organisations. Swire Resources has focused on enhancing its energy efficiency since 2008 and has put a great deal of effort into achieving lower carbon operations. In 2010, the company recorded a 9.8% reduction in energy consumption per unit retail store area, compared with 2008.

40 criteria related to the airlines’ various products and services. Praising the teamwork exhibited by Dragonair staff, the airline’s CEO James Tong said: “The fact that we have won the World’s Best Regional Airline for two consecutive years and this year’s Best Regional Airline Asia, together with previous Skytrax honours, such as Best Airline - China for six consecutive years and Best Regional Airline - Southeast Asia, demonstrates our commitment to service excellence.”

(Left to right) Mr. Campbell Maclean (Sales Manager, Alex Fraser Qld.), Ms. Kate Jones (Qld. Minister for Environment and Resource Management), and Mr. Jon White (Business Development Manager, Alex Fraser Qld.)

(Left to right): Mr. Richard Gillies, M&S Director of Plan A and Sustainable Business; Mr. Chris Gilbert-Wood, Finlay’s Group Technical Director; Ms. Wanja Michuki MBA, Principal Counselor Trade and Economic Affairs, Kenya High Commission; Mr. Richard Fox, Finlay’s Sustainability Director Kenya; Ms. Louise Nicholls, M&S Head of Responsible Trading for Food.


Marine Research CentreThe Swire Group Charitable Trust is donating RMB5.6 million to Xiamen University to establish a marine research station in Fujian Province to monitor marine ecosystem responses to both global climate and human induced environmental changes. The research station will serve as a time-series observation, marine ecology, ocean engineering and marine instrumentation laboratory, as well as a dive-training centre for marine archaeological research. To be constructed on a 66.34-acre site facing the Taiwan Strait, the station will collaborate closely with Hong Kong University’s Swire Institute of Marine Science (SWIMS), which was established in 1990 with a donation from Swire.

RoadMAP to Reducing WasteIn a first for the industry, Finlays Horticulture has pioneered the use of Modified Atmosphere Packaging (MAP) for cut flowers home delivered to Marks & Spencer customers in the UK. This Valentine’s Day, the company dispatched 17,000 individual bunches of a dozen red roses in MAP to M&S customers. In previous years, each bunch of roses was wrapped in cellophane containing 700

ml of water. The roses had to be held upright during shipment to prevent the water leaking and damaging the flowers or the box, but as the box needed to be rectangular, due to size constraints, this was difficult to guarantee once it left Finlays Horticulture.

No water is needed with MAP: the flowers are simply sealed in a MAP bag and once sealed, oxygen levels in the bag decrease and carbon dioxide levels increase naturally. This atmospheric change reduces the respiration rate of the flowers, extending the storage period and reducing water demand.

So in addition to eliminating water damage, this year Finlays saved 11,900 litres of water and reduced overall transport weight by 11.9 tonnes. And since MAP packaging allows the presentation boxes to be stacked flat, this enabled an increase in pallet-fill from 90 boxes to 120 boxes – a 25% space saving.

Bringing Aid to Rural PNGIn May this year, Steamships Trading announced its partnership with Youth With A Mission (YWAM) Australia to deliver health services to remote areas of Papua New Guinea. The company has donated K400,000 towards YWAM’s recent medical and health education programme in Western Province, where volunteers aboard its medical ship brought treatment to more than 50 seriously ill patients,

as well as carrying out over 200 immunisations and 400 dental, and 200 optometry procedures. The visit by YWAM, who first began work in PNG last year, has proved a godsend to under-resourced rural communities, with one local paddling through the night to bring his seven-day-old malnourished grandson and anyone else from his village who needed treatment to the ship – a two day journey by canoe.

Board Changes Swire Pacific Ltd.

Mr. Geoff Cundle, Executive Director of Beverages Division,

has been appointed an Executive Director of Swire Pacific Ltd.

Mr. Augustus Tang, Chief Executive Officer of Hong Kong

Aircraft Engineering Co. Ltd., has been appointed an Executive Director of Swire Pacific Ltd.

Cathay Pacific Airways Ltd.Mr. Martin Murray, Deputy Finance Director

of Swire Pacific, has been appointed a Director of the board of Cathay Pacific Airways following the resignation of Mr. James Hughes-Hallett. Mr. Murray will also take over Mr. Hughes-Hallett’s present position of Finance Director of the airline in November.

Mr. Zhao Xiaohang, Vice President of Air China, has

been appointed a Non-Executive Director of Cathay

Pacific Airways following the resignation of Ms. Zhang Lan from the Board.

Senior Management AppointmentsMr. Tim Blackburn has been appointed Managing Director of The China Navigation Co.

Mr. Charles Bremridge has been appointed Director, John Swire & Sons (S.E. Asia) Ltd.

Mr. Guy Chambers has been appointed Chief Operations Officer (Greater China) of Swire Beverages.

Mr. Derrick Chan has been appointed Managing Director of Taikoo Motors.

Mr. Philippe de Gentile-Williams has been appointed Director Service Delivery of Cathay Pacific Airways.

Mr. Neil Glenn will succeed Brian Townsley as Managing Director of Swire Pacific Offshore on the latter’s retirement in October 2011.

Mr. Richard Kendall has been appointed Director and General Manager of Hong Kong Aero Engine Services Ltd. (HAESL).

Ms. Michelle Low has been appointed Director, Finance & H.R., of Swire Properties.

Raising a Voice: US charity, Voices for Children, held its “Be a Voice, Take a Stand” fundraising gala at the Mandarin Oriental Miami in February. The charity, which supports neglected and abused children, honoured Mandarin Oriental group and Swire Properties Inc. for their 10 years of continuous support, which have helped raise over US$2.7 million in revenue and in-kind support for the foundation. Pictured here are (left to right) Mr. Hans Mueller (Chairman of Voices for Children), Mr. Stephen Owens (President, Swire Properties Inc.), Mr. Jorge Gonzalez (General Manager of Mandarin Oriental Miami), and Mr. Nelson Hincapie (President & CEO of Voices for Children)

in monthly instalments by way of a deduction from the employee’s gross salary. The employee benefits from a 30-40% saving on the cost of the bike, depending on their tax banding, as well as the incentive to pursue a healthier lifestyle, while using a sustainable method of transport. Over the last 12 months, 13 bikes have been purchased for staff and to encourage them to stick to their two-wheeled commute, SOS committed to donating £1 for every cycle commute day logged over the period to its nominated charity Cash for Kids.

Cycle2WorkIn April last year, Aberdeen-headquartered Swire Oilfield Services (SOS) took advantage of the UK Government’s Cycle2Work scheme, which allows companies to purchase bicycles on behalf of their employees, with the cost of the bike then being paid off

12 S W I R E N E W S2 n d I S S U E 2 0 1 1 13F E AT U R E

Coca-Cola celebrates its 125th anniversary this year. Swire Beverages’ relationship with Coca-Cola began in 1965 with the acquisition of a Hong Kong franchise. Today, the company is one of the largest bottlers for Coca-Cola, delivering over 60 million drinks to customers every day. While Coca-Cola owns the brand and the ‘secret recipe’ for the beverage concentrates, Swire Beverages manages the manufacturing, distribution and promotions. It is a successful business model that combines the might of a global brand with a local touch.

Since Swire Beverages first joined forces with Coca-Cola over 45 years ago, the company has grown and evolved year after year. While the business has developed its own unique ethos and management practices, many of its core values reflect those of both Coca-Cola and parent company, Swire.

First and foremost among these is a commitment to high standards.

explains Managing Director Geoff Cundle. “Our vision is to be a world-class bottler – in every way.” This commitment to quality manifests itself in many areas of the business, from staff training and development, to operations and, of course, the products themselves.

The Swire Beverages’ commitment to high standards is closely linked to a humility and a willingness to learn. “We still have much to learn and we do so whenever and from wherever we can,” says Geoff. “Firstly, we learn from each other within the company. The four territories we cover are all in very

different stages of evolution, which means each one can benefit from the past experiences of the others and share best practices.” Swire Beverages also sends teams to visit other bottlers around the world in search of new ideas. As the Swire Beverages’ Management Philosophy states, “We learn from the best and copy with pride.”

Like parent company Swire, innovation is another central tenet, underpinning key business activities. Innovation is facilitated by Coca-Cola’s massive research and development centre in Shanghai, which allows the company to quickly identify and respond to changing market needs. “The products we produce are very much aligned to local tastes,” explains Geoff. An excellent illustration of this fact is the recently launched Pulpy Super Milky, which fuses fruit juice with dairy whey protein and coconut pulp in a drink that can be distributed and sold without refrigeration .

Selling a 125-year-old Beverage

As the sole distributor of Coca-Cola products in Hong Kong,

Taiwan, and parts of Mainland China and the United States,

Swire Beverages is the silent force behind many of the

drinks that have become part of daily life in these markets.

With a well-established presence, it is a company that has

its sights set on massive growth over the coming decade.

However, it is also a company facing many challenges.

“We set standards that are deliberately unreasonable, and do not settle for average,”


An unchilled milky drink with fruit pulp may not appeal to a Western audience, and it is not supposed to. Pulpy Super Milky was created with the Asian market in mind. It particularly targets Chinese parents with a single child whom they wish to nurture with the best of everything. This innovative beverage clearly hit the spot among target consumers, and has proved a big success in the highly competitive dairy drink market.

Like any company, Swire Beverages is intent on growth, and with talk of growth, thoughts turn naturally to China.

It’s an ambitious target, but senior management feel it is achievable given projected market figures. It is estimated that there will be an additional 400 million urban dwellers in Mainland China by 2020. These city-dwellers will have a greater income and thus a greater ability to buy soft drinks. Expectations are that current per capita purchases of 34 per annum will likely grow closer to Hong Kong levels of 204 per annum. Geoff adds that he also remains confident about the United States, despite current negative sentiment on the U.S. economy. “The fact is, the U.S. has a growing population with a high GDP, and the third highest teenage population in the world. It remains fertile ground for us.”

There seems to be little doubt that the Swire Beverages business can look forward to growing revenue over the next few years. However, with growth comes increased responsibility and many of the challenges that Swire Beverages is facing will be brought to the fore. The first among these is how to conduct business whilst minimising its negative impact upon the environment.

Swire Beverages faces the same environmental issues as many businesses, including energy consumption, carbon emissions and waste management. However, some challenges are particularly pertinent to the company. Water consumption, for example, is a pressing challenge for Swire Beverages. The company accounts for almost 80% of the Swire Pacific group’s water consumption, using it both in the beverages themselves and to maintain quality and hygiene in the production processes. Material consumption and disposal is another challenge, and the pitfalls of producing non-returnable drink containers are clear.

“Sustainability is something we take very seriously,” says Geoff. “We do not see it as an optional add-on. Rather, it is an essential part of conducting business.” In recent years, Swire Beverages has introduced many environmentally friendly measures that have proved successful. Since 2004, these have resulted in an overall reduction in its water use ratio of 37%, while its energy use ratio is down by 38%.

Perhaps the most exciting development last year was the opening of Swire Beverages’ plant in Luohe, Henan which is currently seeking LEED (US Leadership in Energy and Environmental Design) certification. The plant has a floor area of 166,000 square metres and seven production lines that will serve Henan’s 94 million residents. Energy efficient solutions include a geo- thermal heat exchange system, which uses pipelines laid at varying depths to provide both heat and cooling for production and air-conditioning purposes; translucent roof panels and tubular skylights which give natural light to 75% of the plant’s total area and wind- and solar-powered street lamps. Production efficiency is also improved by one of the first high-speed bottle blowing/filling lines in Mainland China and the most advanced ambient sugar dissolving system in the world. The waste water discharged from the water treatment system for incoming water is recovered and completely reused, saving 25 million litres of water a year.

The more than 49 environmental solutions incorporated into the Luohe plant illustrate Swire Beverages’ commitment to making full use of the latest emerging technologies and to incorporating such from inception. The plant represents a substantial investment of US$135 million but Swire Beverages believes that the environmental investments are well justified.

The company plans to triple its Mainland China business by 2020.

Absolute water and energy consumption in 2010 reduced 4% and 7% respectively vs 2004 despite production volume growth of 52%.

As an official recognition of Swire Beverages’ contribution to Luohe, the city’s Muncipal Government has presented Clive Saffery, Swire Beverages’ CEO for Mainland China and Simon Yip, Director and General Manager of Swire Coca-Cola Beverages Zhengzhou, with Honorary Citizenship. Seen here is Mr. Saffery receiving his Citizenship Certificate from Mr. Lu Qinghai, Acting Mayor of Luohe.

In November 2009, the “Coca-Cola Taiwan Water Bank” was launched to raise awareness in water conservation. A water calculator was developed for consumers to measure their water usage in daily life and actions were recommended to reduce consumption. The on-line “bank” has gamification features like an ATM to make it fun for participants in effecting behavourial changes. At the launch with the “Passbook” were (left to right): Mr. Hsieh Yin-Shi, Chairman of Environmental Quality Protection Foundation, Mr. Yang Wie-Fu, Director General of Water Resource Agency, and Mr. Doug Klein, General Manager of Swire Coca-Cola Taiwan.

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Meanwhile, in answer to the issue of material use, Swire Beverages has embraced innovations in sustainable packaging design, both in terms of the ingredients used and also in light-weighting (reducing the material amount in its packages). Last year, Mainland plants introduced bottles made with 10% recycled PET, an initiative that has saved 728 tonnes of virgin PET resin to date. Meanwhile, in the United States, PlantBottle, a revolutionary bottle partly made from plant-derived sources, is now being used in the production of Dasani water.

In addition, most Hong Kongers will by now be familiar with the new lightweight Bonaqua bottle, launched in July 2010. Thanks to a unique design and advanced technology, the 500 millilitre bottle uses 34% less plastic, making it the lightest plastic water bottle in the city. The new bottle is also easy to ‘twist and shrink’, encouraging consumers to carry it until they can find a recycling bin and reducing recycling space by 86%.

Tom Mehrmann, CEO of Ocean Park, Hong Kong, attests to the efforts made by Swire Beverages in the realm of sustainability. Ocean Park has a long-term relationship with Swire Beverages, the official supplier for the park. “Education and conservation are among our core values. We must consider the environment in everything we do and in the partners we choose to work with. Swire Beverages is definitely a partner we have confidence in. We have seen the company invest heavily in sustainability initiatives and have to give them a great deal of credit for their efforts.”

Swire Beverages and Ocean Park worked together to promote a ‘reverse vending machine’. The machine allows consumers to deposit their used beverage plastic bottles for recycling. It also returns the value of the bottle to them, which users can choose to add to their Octopus cards or to donate. “Most users choose to make a donation,” says Tom. “The machines have proved popular and we currently have five in the park.”

In May this year, Swire Coca-Cola Zhengzhou witnessed its first treated water being transported to the Peng Hu Park near the plant and marked a milestone in achieving zero wastewater discharge. This was the result of collaboration with the Zhengzhou Municipal Government and the Development Zone Water Savings Office to provide treated waste water for community use.

Alongside sustainability, another issue being faced by Swire Beverages is the growing public health concerns over consumption of soft drinks. In many parts of the world, obesity and the prevalence of diet-related illnesses are growing at alarming rates. Soft drinks have been cited among the key culprits.

Geoff is keen to point out that this is not an issue Swire Beverages is shying away from.

We believe that the truth is always our friend and we actively seek it out.” He points out that to blame soft drinks entirely would be overly simplistic. “Obesity is a complex problem which is caused by a multiple number of factors. In the US, soft drink consumption is declining, but obesity is still on the rise. Clearly there are other factors at play, such as heredity, dietary habits, and lack of exercise.”

Geoff explains that Swire Beverages aims to be part of the solution. That solution, as the company sees, has three main components. “First, educate consumers; second, provide them with informed choices, and lastly promote a healthy active lifestyle,” says Geoff. “We believe all foods have a place in a balanced diet including soft drinks. People gain weight when they consume more calories than their bodies use. No one food or beverage causes obesity. All products produced by Swire Beverages now have the number of calories marked clearly on the front of labels. This is something our competitors are not doing outside of the US – we are leading the way in that respect.”

Swire Beverages provides a wide variety of beverages with or without calories to meet consumers' needs for fun, refreshment, nutrition and hydration. “We now cover all categories, including sparkling drinks, juice drinks, teas, coffees, water, sports drinks etc. And our offerings include Coca-Cola, Sprite, Fanta, Minute Maid, Yuan Ye, Nestea, VitaminWater, Bonaqua, Aquarius and many more.”

Geoff also points outs that Swire Beverages organises and sponsors sports events at both elite and grass root levels among youths and adults in all its markets, consistently promoting an active, healthy lifestyle for both young and adult consumers.

Swire Beverages is determined to grow, and to grow in a responsible and sustainable way. “Our efforts are genuine,” says Geoff. “We feel proud of our brands, and we want each one of our 22,000 staff to feel proud too. In my opinion, it’s the only way to do business.”

“All over the world, our consumers are telling us they care about their health, and we care too.

Tree-planting: Over 100 staff from Swire Coca-Cola USA took part in four tree-planting events in conjunction with Tree Utah and Re-leaf Boise. In total over 600 trees were planted which more than offset all of the emissions from the U.S. operations’ 2010 air travel.

“Whiskers”, Ocean Park’s mascot, helps to promote the reverse vending machine.

Pulpy Super Milky gets the thumbs up in Mainland China.

17F E AT U R E


In May last year, Swire News reported on the

successful launch of the Swire PNG Rainforest Study

(SPRS) in Madang Province, Papua New Guinea. A

year on, some Swire staff headed into the jungle to

understand more about the project. Sophie Pieters-

Hawke, Sustainable Development Coordinator for

John Swire & Sons Pty, reports:

In 2008, the Australian-based John Swire & Sons Pty committed US$250,000 to support an extensive long-term study of Papua New Guinea’s rainforests. The project had three elements: the construction of the Swire Research Station near Wanang, the establishment of an adjacent 50-hectare permanent research plot, and social development projects such as the construction and ongoing support of the Wanang Elementary School. The Swire Research Station now attracts national and international students and researchers, and is fast becoming one of the country’s hubs for biological and conservation research, with a stellar international reputation.

For the official opening in May 2010, visitors flew into Wanang Village by helicopter from Madang – a leisurely 30-minute journey. This time we did it the hard way: spending four days scrambling through the rainforest, sliding through mud and battling leeches and mosquitoes. We slept in villages and bathed in rivers. It was a wonderful adventure. While physically challenging, it was a great way to get a feel for the forest and the people who live in it. Walking with some of the world’s most knowledgeable tropical biologists meant that there was always something new to learn and discover. Spending time in Wanang Village, observing an all-night sing sing and having time to talk and relax with members of the community also allowed us to gain an appreciation of their culture and develop a better understanding of what drives their desire for conservation. “It was

Swire PNGRainforest

Study “

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encouraging to see first-hand just how aware the Wanang people are of their future options for development, as they seek to balance the immediate modernisation demands from the community with the sustainability of their pristine environment. I look forward to watching the progress of this innovative programme during my time in PNG,” says Tom Owen, who is transferring later this year to Port Moresby as COO Logistics for Steamships Trading Company.

We are pleased to report that the Wanang Elementary School, started two years ago with Swire support, has grown since last year: an additional two classrooms have been built, bringing the total to four, and there are now four teachers in charge of 130 students up to Grade 3. Attendance is high, and the children are progressing well with their studies. Over time, the aim is to grow the school to provide primary education up to Grade 6 for the children of the Wanang community, preparing them for further education opportunities.

said Merlin Swire after his tour of the school. Students take lessons in Maths, English, the Environment and Health, but Sport could be the most popular subject, as they jumped at the chance of a game of football with the visitors. The inaugural Swire V Wanang football match was tightly contested, but each side walked away happily with one goal apiece.

Arriving at the Swire Research Station after eight hours walking through the jungle, we were all struck by its remoteness. The station is the first of its kind in PNG and one of only a handful globally that is located in the heart of pristine rainforest. Nestled amongst the trees on a ridge line on the edge of the monitoring plot, the station provides a home-base for those conducting their world-leading research, with accommodation for up to 20 people. We got to meet the research team, who took us out into the plot to show us what their fieldwork involves. The permanent 50-hectare forest monitoring plot was established to

better understand the biodiversity and dynamics of PNG’s rainforest. Researchers are in the process of accurately measuring and mapping all the trees in the plot with a trunk diameter greater than 1 cm – a laborious process. First, the plot was mapped using a precise topographical survey, such that individual trees can be identified, located, surveyed and monitored over time. This data is the keystone of tropical forest biology – it is crucial for research that will allow us to understand rainforest species dynamics and interrelationships, forest growth dynamics and rainforest biomass and carbon content. Such research will then feed into how we understand rainforests react to climate change, and their carbon storage ability. Seeing the challenging work environment, the precise nature of the data, and the rigour with which the scientists conduct their analysis, gave us a whole new level of appreciation of the calibre of the research being conducted, and why it has gained international recognition.

“Swire has always believed in the value of education at every level. This grass roots educational support is for the first time providing the children of the Wanang community with a strong basic academic foundation, and with all the opportunities that will stem from that,”

Tom Owen and traditional Wanang dancers

Philippe Lacamp fording the Wanang River

The inaugural Swire V Wanang match

Merlin Swire in the Grade 1 classroom

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The Swire Research Station is modelled upon and linked into an established network of similar research programmes that operate across the world. The Centre for Tropical Forest Science (CTFS) is a branch of the Smithsonian Institution and supported by Harvard University, and is committed to long-term large-scale rainforest research.

Taking a long-term view, SPRS is more than a philanthropy exercise: investing in the development of sustainable forestry practices makes sense to Swire, as it is also an investment in understanding our carbon offset opportunities.

Philippe Lacamp, head of Swire’s Sustainable Development Office in Hong Kong, says: “While it was fantastic to get out there and see the quality and importance of the research at the Swire station, the trip was really eye-opening in terms of scalability. A number of the existing and planned CTFS plots are located in countries

where Swire has operating companies – particularly Mainland China. While we are keen to see support for the research work continue, we also have carbon offset potential for the group in mind and we are working with CTFS to identify opportunities for other Swire companies to get involved.”

With a substantial carbon impact across our operations, and an increasingly significant offset need, both regulatory and voluntary, operating companies are beginning to look at how these needs can be met now and in the future. Protecting one of the most significant – yet vulnerable – rainforests in the world could also offer future commercial opportunities

that align with the Swire ethos. Having an understanding of the conservation forestry industry and the ability to take a long-term view will mean that Swire is well positioned to identify such opportunities, if and when they emerge.”

Special thanks to the team at BRC for making it happen, Steamships Trading Company for their assistance and advice, Swire Resources for kitting us out in well needed Columbia gear, Dolly for the spectacular food, the team at Coastwatchers Hotel for being a welcome sight for sore eyes. Biggest thanks goes to the members of the Wanang Community, for welcoming us into their homes and their forest.

CTFS provides the overarching scientific model, tools and methodologies, and coordinates the collection and analysis of the biodiversity data generated by 41 similar sites, located across 21 countries. CTFS also facilitates the collaboration of over 500 scientists and researchers, who monitor 4.5 million trees and 8,500 species globally.

Merlin Swire assisting with tree measurement

The Team arriving back at the village after two days of challenging walking (l to r): Philippe Lacamp, Merlin Swire, Sophie Pieters-Hawke, Tom Owen.

Swire Station

Billy, a lead researcher assisting with plant identification

”

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Corporate Treasure Trove

The letter and minute book are prime examples of valuable business records that thankfully were not disposed of despite serving no immediate commercial purpose today. Kept for posterity, records that might seem to be quaint mementos of the past can point the way towards important business insights and contain long-forgotten, detailed, information.

Buoyed by such promise and an understanding of the vital role business archives play in recording the historical, economic, social and political environment in which a company operates, the HK Archive Service (HKAS) was established in April of this year. The goal of the HKAS is to create professional business archives for Swire companies in Hong Kong and eventually extend its reach to Mainland China, Taiwan and Singapore.

Not long ago, Bonnie Sze, Manager of Swire’s newly created HK

Archive Service, came across a 1950 letter to John Swire & Sons

London from the then chairman of Cathay Pacific Airways, C.C.

Roberts. The letter reported the directors’ minuted resolution that

Australian National Airways, Pty would succeed John Swire & Sons,

Ltd as their agents in London. Separately Sze also came across

a Cathay Pacific minute book from 1949. Kept in the Company

Secretary’s department of John Swire & Sons (H.K.), the book paints

a vivid picture of Cathay Pacific’s earliest days. This factual record

includes the commission rates that Butterfield & Swire took as agents

for Cathay Pacific and details what was required of them in return.

Whilst the archive of John Swire & Sons Ltd in London has been maintained for many years in conjunction with the School of Oriental and African Studies, in 2010 it was realised that there was little formal keeping of records for archive purposes amongst Swire’s operating companies. Rather than expecting individual companies to maintain their own archives, it was felt that the best solution was to create an archive service that could reach out to the operating companies. The HKAS is the first step on this road.

Rob Jennings, Manager of Archives and Public Affairs at John Swire & Sons London, is spearheading the project, with Sze serving as HKAS Manager. “Company archives are not just a matter of nostalgia,” explains Jennings. “We want to ensure that we

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Contractor’s Security

(Official seal of Woo Kee) hereby guarantees that:As Fung Tai undertakes to repair the pier of your Company, it is agreed that your Company shall settle the repair payment in full upon completion of work. The company shall bear full liability if any fault by any other party involved is found. After completion of work, the company shall not be liable for any water damage, which should be held responsible by other party involved. This letter is written as instructed by Taikoo Company via cable (or telephone).

Letter of Security by (official seal of Tak Tseng Woo Kee)

Date: 22nd April, 1894


methodically collect and maintain the records that future generations of company staff, researchers, business historians and genealogists will find useful”. He adds that many Swire companies have played key roles in Asia’s development, giving rise to

“a duty of care to manage and grow our archives.”

Swire’s efforts reflect a trend among companies everywhere to consider records an indispensable part of business, observes Simon Chu, chairman of the Hong Kong Archives Society and an archivist with more than 20 years of experience working with government and industry. “People often think of people and money as resources. Records are often neglected,” says Chu. “Awareness in Hong Kong has been growing as businesses see how

Chu’s view is shared by other experts beyond Hong Kong. Dr Gregory S. Hunter, a professor at Long Island University who has testified on corporate archives before the U.S. Congress, maintains that archival records support the profitability of a corporation by documenting “patents, trademarks and other intellectual property rights.”

Hunter adds that archival records can support customer relations, with old print advertisements readily re-purposed for new audiences and campaigns. They are also critical to conveying corporate culture, values and traditions to new employees.

“Understanding previous management decisions can help current managers make better business decisions,” he says.

These are the kinds of benefits that Jennings and Sze envision. Accordingly they are writing policies and procedures to help Swire staff timely identify and clearly organise records that could qualify for long-term preservation in the archives. The aim is for HKAS to conduct company visits and establish communications over the next five years. Records will be archived by HKAS and remain the property of the creating company. Whether physical or digital, records will be preserved in secure and environmentally controlled storage.

Admirable as their objectives are, Jennings and Sze appreciate that several challenges lie ahead. For starters, it is inevitable that some people will not deem their own work worthy of careful recording. “Many dismiss that what they produce is of value,” admits Jennings. “We want people to understand not just what they produce but why it is of value.”

HKAS wants people to bear in mind whether a possible treasure like the Cathay Pacific minute book is lying in their midst. “It could be a box of items under the desk, a cabinet in the office or perhaps a whole room of old stuff that nobody is sure what to do with,” says Jennings. “We can assess its suitability for the archives, or we can give the OK to dispose of it.”

Jennings warns that office relocations and restructuring are potentially highly disruptive to record-keeping. “Either the records move with the

office or they are sent for destruction,” he says.

Swire companies in Hong Kong have been subject to many moves, and combined with a chronic lack of adequate storage space in the city, many records have unfortunately not survived to be included in archives. HKAS offers a fresh opportunity for companies to obtain help in documenting records in an orderly fashion. By caring for Swire’s heritage while helping businesses run smoothly, this initiative represents a win-win proposition for everyone involved.

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good records increase operational efficiency.”

What Makes for Archival Material?Archives are those records generated by corporate activity, that are identified as being of historical value and that merit permanent retention. Potential archival material:

General materials – policies, guidelines, handbooks, manuals, procedures, standards, specifications, statements, codes, directories; organisation or departmental charts; strategies and development plans; management reports and meeting minutes; major surveys or research; records of particular events and incidents

Corporate management – Directors’ correspondence; audit and compliance records; corporate governance-related records

Legal – contracts, agreements, licences; patents or intellectual property records; announcements

Finance – audited accounts; records of product, service or operational costs, debt and loans, acquisition and sale of assets

Human resources – salary reviews and rates records; pension schemes and programs of healthcare, staff benefits, recruitment or training; staff circulars

Sales, marketing & public affairs – PR and communication materials; publications, advertisements and premium items

Operations – records of the unique activities and functions undertaken by individual operational departments; uniforms

If you are planning an office move or company/department restructuring, please contact Bonnie Sze on +852 28408081 or [email protected], or Rob Jennings on +44 (0)20 7963 9470 or [email protected]


A recent exhibition of miniatures at Cityplaza brought back nostalgia to a lot of old Hong Kongers and gave the younger generation a glimpse of by-gone days.

The Way We Were

2nd issue 2011 - john swire & sons · cathay pacific has signed an agreement with boeing to...

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