Shun Fung Ironworks was a leading producer of rebars, steel bars used for reinforcement of concrete in construction from the 1950s to 1980s.
The business started in 1951 with the purchase of the Ying Fong Ironworks, located in Tai Tok Tsui. In 1953, the factory was relocated to 423 To Kwa Wan Road in Ma Tau Kok (Shun Fung Ironworks (1st location) [1953-1972]). Their business was to cut steel plates from ships (scrap metal from ship breaking), to melt them down in the first electric furnace in Hong Kong, and to produce rebars. These rebars were needed for the construction boom of buildings that started in the 1950s.
Due to the expansion of the nearby Kai Tak Airport, the factory had to be relocated again. In 1962, the company purchased (reclaimed) land in Junk Bay. The new-built ironworks were much bigger compared to the older one (Shun Fung Ironworks (2nd location) [1967-1987]). It opened in 1967. Activities were more and more shifted to Junk Bay, the Ma Tau Kok plant finally closed in 1972.
After years of rising production, the company ran into difficulties in the early 1980s due to costs rising even more sharply. This resulted in losses year after year. Unexpectedly for the company, the Government announced plans in 1981 to redevelop Junk Bay into Tseung Kwan O new town. Shun Fung Ironworks were forced to close down in January 1987. As they could not find a suitable location in Hong Kong, they moved to Shunde in Mainland China.
(Source and further reading: R.P. de La Sala – the Global Shipping and Industrial Magnate from HK – The Industrial History of Hong Kong Group)
Addendum:
Shun Fung Ironworks claimed compensation from the Government. After a long trial, the company was granted a compensation in 1990 of HK$ 151 million, increased by the Court of Final Appeal to HK 519 million. This case was considered to be of fundamental importance and was therefore referred to the (UK) Privy Council. The council finally decided that the sum of HK$ 519 million should be the basis for a detailed recalculation. This decision sets the global benchmark for compensation in cases of expropriation.
(Source and further reading: Director of Buildings and Lands v Shun Fung Ironworks Ltd - vLex United Kingdom)