CEO Daniel Derichebourg states that the company is still in preliminary talks with the government; however, he is eager to establish this arrangement at the earliest opportunity.

A prominent French aerospace service firm intends to establish Hong Kong as its hub for expanding operations throughout Asia, encompassing Mainland China. The company remains optimistic about concluding an agreement to set up its inaugural facility for manufacturing and trading airplane components on the Asian continent.

In an exclusive interview with the Post, Daniel Derichebourg, who serves as both chairman and CEO of the France-based Elior Group, voiced his belief that a pact between the company and the municipal administration might be achieved. He also noted that under official backing—by providing resources such as plots of land and skilled personnel—Hong Kong has every potential to maintain its status as a leading hub for aviation expertise.

He mentioned his hope to establish the company’s operations for aircraft dismantling, part processing, and recycling in the city at the earliest opportunity.

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“We are still in the preliminary stages of our talks… Indeed, we are confident that we can get this done. Otherwise, we wouldn’t be present,” stated Dericheourg, who is 72 years old.

We are enthusiastic and dedicated about establishing this operation in Hong Kong. Our aim is to expand our business across Asia, with Hong Kong serving as our regional hub.

Last week, following a meeting with Derichebourg, CEO John Lee Ka-chiu posted on Facebook expressing his complete backing for the company establishing itself in Hong Kong. He assured that the government would offer one-stop services to facilitate the organization’s operations within the city.

Elior Group plans to collaborate with nearby organizations to implement technical training programs aimed at developing local skills and generating employment opportunities, he stated.

Backed by the central government, Hong Kong encourages an increased presence from both international and domestic companies looking to broaden their operations and explore new prospects within the region.

The team entered into an agreement with the city in February through a Memorandum of Understanding.
Airport Authority
To investigate offering professional services like airplane disassembly, component reuse, and associated education.

During his budget speech in February, the Financial Secretary said
Paul Chan Mo-po
unveiled strategies to transform Hong Kong into Asia’s premier hub for aircraft parts processing and trade via an intended collaboration with the group.

Derichebourg mentioned that Elior plans to extend its presence into Asia, using Hong Kong as a hub, and capitalize on the significant prospects presented by the fast-developing region, which encompasses substantial chances within mainland China.

One of the conglomerate’s largest customers, Airbus, increased its projection for the number of new airplanes required in the Asia-Pacific area over the coming twenty years to 19,500—a figure which represents 46 percent of the global demand totaling 42,430 new aircraft expected by 2043.

Derichebourg stated that they have a global footprint in Europe and America, and their next step is to expand into Asia as well.

He noted that the city held significant promise to become Asia’s premier hub for aircraft parts processing and trade due to its international airport being the third busiest in the area.

In 2023, the Elior Group, which is owned by the Derichebourg Group, took over the Multiservices division of the same parent company. This entity managed an extensive array of operations across 11 different nations, encompassing various sectors including aviation, construction, and food service contracts.

Starting his professional journey at 16 by cleaning basements for his father’s modest scrap metal company, Derichebourg methodically expanded his operations over time. He transformed them into an international player within the sectors of waste management and business services, achieving revenues exceeding €5 billion ($5.4 billion) annually.

Earlier, he mentioned that the Elior Group, which includes companies like Boeing and Comac as part of its client base, was still in talks with the government regarding specifics about the intended operations. This included deciding on locations for their facilities and planning how they would train local staff through partnerships with the Hong Kong International Aviation Academy.

Janet Cheung, CEO of Elior Asia, stated that the initiative would necessitate three locations: one for disassembling aircraft, another for storing parts, and a third for processing and recycling them.

The initial location should be a hangar at the
Hong Kong International Airport
For disassembling airplanes and trading components, along with functioning as a movable facility to educate technical personnel.

The second location ought to be close to the airport for storing components, allowing them to be readily shipped abroad.

The third requirement was for a larger facility located anywhere in Hong Kong dedicated to processing and recycling aircraft materials, including valuable metals that could be repurposed for making new aircraft.

“As approximately 98 percent of an airplane can be recycled, the worldwide demand for aircraft components reuse is extremely high,” Cheung stated.

Given the significant delays in delivering new airplanes worldwide because of supply chain problems, this premium aircraft recycling industry has the potential to compensate for these shortages.

Cheung mentioned that the scale of the proposed operation would be determined by the aspirations of the government.

“Flexibility is key for us. We aim to modify our conditions based on the actual circumstances in Hong Kong,” she stated.

I am quite confident that the Hong Kong government can achieve this. It involves a circular economy…which will boost the city’s position as an aviation hub and global financial center.

The worldwide market for the decommissioning, dismantling, and recycling of commercial aircraft is expected to increase from $8.1 billion in 2023 to approximately $14.7 billion by 2033.

The expansion of the market is fueled by a surge in aircraft retirements, accompanied by a growing number of recycling and dismantling facilities.

It is believed that approximately 400 to 450 airplanes are taken apart and recycled annually.

An individual airplane usually comprises roughly 800 to 1,000 recyclable components, which include metal alloys like aluminum and titanium, along with composite materials such as carbon fiber.

A focus on circular economy principles and the increasing reuse of airplane parts is anticipated to propel expansion in the worldwide market in the upcoming years.

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The article initially appeared on the South China Morning Post (www.scmp.com), which serves as the premier source for news coverage of China and Asia.

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