Hong Kong’s only drinks carton recycler will have to halt collections from Saturday unless its government-backed landlord budges on its decision not to renew their lease, Mil Mill’s co-founder has said.
Speaking to the press on Tuesday, Harold Yip denied the Hong Kong Science and Technology Parks Corporation (HKSTP)’s claim that both parties had only agreed on a short-term lease in 2018 for the Yuen Long Industrial Estate venue.
“[I]f the agreement was only three years all along, we would not have invested 10 million [dollars] in the first place,” Yip said in reference to the factory start-up costs.
“We’re just a small and medium-sized enterprise. The HKSTP might have a huge PR team working for them, but I stopped my other duties just to deal with this. We have a lot more to work on if we really plan to expand our business to Singapore,” Yip said, adding that he was not interested in meeting with the HKSTP anymore, and that a university professor from Singapore has invited Mil Mill to start a new project there.
If Mil Mill were to close, Yip said there would be a “vacuum” in Hong Kong’s drinks carton recycling industry, adding that it may be difficult for people to rekindle the carton recycling habit.
Yet, the recycling entrepreneur said they would not give up: “[W]e see the recycling business in Hong Kong as our vocation.”
With the city’s landfills nearing capacity, the government has set a target to gradually reduce per capita municipal solid waste by 40 to 45 per cent, and raise the recovery rate to around 55 per cent by encouraging recycling and charging for disposal.
The lease
Albert Wong, the Chief Executive Officer of HKSTP, told the press on Tuesday that they have been “working hard to help” Secure Information Disposal Services Limited (SSID), Mil Mill’s parent firm, from the beginning.
Wong said they had made it clear to the recycling firm that the initial lease was set to expire in three years by the end of 2021 and the HKSTP had reminded their tenant in mid-2020.
Mil Mill had said in a previous statement that its two co-founders understood the landlord would allow them to operate for at least six years when they rented the site in 2018.
But Wong said he had confirmed with HKSTP’s existing staff that they never made such an offer: “During business planning, they should have clearly worked out [what they can do] within three years,” Wong added.
After learning about the paper pulp mill’s relocation difficulties, Wong said they granted a request for a year-long lease extension late last year: “It is not the case that we are evicting them as soon as the lease expires.”
When asked why the recycling plant must relocate so soon and how it may obstruct industrial projects nearby, the Head of Re-industrialisation at HKSTP Yiu Hing-leung told reporters that “whenever a short-term lease is used, it means there are existing plans in the background.”
However, the two HKSTP representatives did not give further details on how they plan to use the lot occupied by Mil Mill or whether there is a new tenant waiting, despite repeated questions.
Reporters also questioned why Hong Kong’s sole drinks carton recycler does not qualify for a long-term lease at the Yuen Long INNOPARK, which would have allowed them to operate over a longer period of time – or even until 2047.
In response, Wong said there was still a chance for Mil Mill to apply again as a long-term tenant. By then, he said the HKSTP will evaluate whether their business meets the park’s eight “Re-industrialisation Guiding Principles.”
“I guess if they really apply to rent a [long-term] lot, it is possible that will work out,” Wong added.
Wong said the HKSTP will continue communication with the paper pulp mill and help them “as much as possible.” He also confirmed they had mentioned in an email to Yip that a three-month grace period can be offered, adding that it would be “impossible” for them to extend to two or three years as asked by Mil Mill.
Fear of closure
Last week, Mil Mill said it faced closure over the landlord dispute. A green group estimated that 2 billion beverage cartons would be sent to local landfills annually if that was the case.
While environmental authorities had offered alternative locations for the paper pulp mill to apply for, co-founder Yip told HKFP that the suggested lots were either too expensive or unsuitable.
Additional reporting: Lea Mok
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