Page 29 - Sphere No.8 (Mar 2003)

TOP OF
THE GAME
Hutchison’s tie-up with a leading toy maker is an excellent fit for both companies: Hutchison
gains a manufacturing arm and Hutchison Harbour Ring is playing in a bigger league.
By Arun Sudhaman
A stroll through the shopping
areas of any major metropolis
can often reveal more about a
company than a sheet of facts
and figures. In the case of Hutchison
Harbour Ring (HHR), this is particularly
applicable. Saturday in Hong Kong or
New York or Tokyo sees thousands of
shoppers thronging retail stores, searching
for the latest hot new video game
consoles, futuristic action figures, digital
cameras, computer and mobile phone
accessories and other examples of high-
tech wizardry.The young and the young-
at-heart lead this charge, and each new
product is greeted with fascination and
enthusiasm.
Most of these shoppers, however, are
unaware that HHR’s influence is
everywhere they look, for the products
they crave carry well-known brand names
not readily associated with the company.
Yet the popularity of these products
provides compelling evidence of HHR’s
important role in the global supply chain,
as the company effectively provides the
brains and the brawn behind many of the
world’s favourite toy and electronic
products.
HHR is at the top of the game when
it comes to the design, development and
manufacture of a substantial range of toys,
electronics, and premium products for
big-name brands such as Mattel, Takara,
Hasbro, NEC and Motorola.
It is a position the company has
attained through years of sustained
progress.
The role of Hutchison Whampoa
Limited (HWL) in this story began
in 1994, when it took a 21% stake in a
Hong Kong publicly listed toy manu-
facturing and property company known
as Harbour Ring, which was founded by
the Luk family.
By 2001, this share had increased to
50.5%. A new board was installed, with
seven of the ten executive directors
coming from HWL. Along with the
facelift came a name change, and
Hutchison Harbour Ring was born.
GAME PLAN
With over 20 years of manufacturing
experience in Mainland China,
HHR has quickly been positioned
as a manufacturing division of
HWL. In turn, the acquisition by
HWL represents a new growth
direction for HHR.
HHR Deputy Chairman
Dominic Lai, who is also an
executive director of HWL,
confirms that HHR’s role as
a manufacturing vehicle
could make it a key player
in Hutchison’s game plan.
“There is great value in
HHR’s manufacturing business, and
HutchisonWhampoa is harnessing this
potential by opening doors for them.We
can add value and transform a good
company into something even better.”
The synergies between the two
companies make HHR an attractive
proposition for customers, business
partners and investors alike. HHR is one
of the world’s leading original equipment
toy manufacturers, occupying a pro-
minent role in the world’s largest toy
export region. The company has main-
tained a presence in China for over 20
years and now owns four modern and
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