Swiss precious metals refiner Valcambi and Shiu Wing Steel, Hong Kong’s only steel mill, have signed a letter of intent to establish a precious metals refining and vaulting operation in Hong Kong, the companies said on Thursday.
The proposed joint venture would be based at Shiu Wing Steel’s facility in Tuen Mun, Hong Kong, and would target customers across the Asia-Pacific region.
Shiu Wing Steel said the venture would help the company’s diversification beyond its core business of steel rebar production.
For Valcambi, the project is intended to strengthen its presence in Asia-Pacific markets.
Valcambi has an annual refining capacity of up to 2,000 metric tons of gold, silver, platinum and palladium.
The announcement came during a visit to Valcambi’s facilities in Switzerland, by Christopher Hui, Hong Kong’s secretary for financial services and the treasury.
Hui told a precious metals conference in Italy this week that Hong Kong expected more refineries to establish operations in the territory as it expands its gold trading ecosystem.
Hong Kong aims to have more than 2,000 metric tons of gold storage capacity within two years. About half of that capacity is expected to be provided by the government and the remainder by the private sector, Hui told the conference.
(Reporting by Polina Devitt; Editing by Alison Williams)
