A federation of 6,000 Chinese manufacturers has commissioned Warwick Manufacturing Group at the University of Warwick to train 200 graduates a year for the next five years.
The agreement was signed by the director of Warwick Manufacturing Group, Professor Lord Bhattacharyya and Stanley Lau, president of the Professional Validation Council of Hong Kong Industries.
Around 1,000 students will benefit from the scheme, which has been set up to deal with the labour shortage afflicting engineering and technology management companies in Hong Kong.
At present, there are more than 80,000 Hong Kong industrial enterprises in China employing almost 20 million people.
It is estimated that more than 100,000 engineering and management new posts per year are required to support the growth of the industries.
However, Hong Kong universities are only training up 3,000-4,000 full time engineering students each year which is far less than the demand from the industry.
Severe shortages of engineering graduates for entry level positions has prompted the PVCHK and WMG to set up this new Engineering Graduate Development Scheme.
Hong Kong manufacturers have already pledged over 80 scholarships amounting to HK$2.5 million to students who are taking up WMG MSc courses.
The scholarships, for the year–long masters degree in manufacturing engineering, cover the #14,000 cost of the course. The scheme will cover design, procurmenent, manufacturing systems and logistics and involves some of the scholars visiting Midland companies with which WMG has links.
This figure will rise to 200 scholarships a year for five years.
Mr Lau said: "The Hong Kong industry is highly supportive to local engineering students.
"We hope that the scheme will revive students' interest in engineering, as well as attract high quality students from all over the world to come to Hong Kong to serve the industry, and together we will write a brand new chapter for the manufacturing industry."
Professor Lord Bhattacharyya said manufacturing engineering was the source of every industry.
"Without manufacturing industry and without a product, there will be no business, accounting and finance, and there will be no other service sectors at all.
"Manufacturing industry is the source, and the origin of all businesses. We have had links with China since the early 1980s and have trained thousands of people because the Chinese recognise our strength in manufacturing.
"We have a strong relationship with univerisities in Harbin, Woo han and Nanjing which have built up over the years, and take about 500 students from China each year.
"We also take about 150 a year from Hong Kong. This is part of our ongoing relationship which goes back 20 years.
"All these scholars who come to take part will have jobs with companies in China, so this will help build links with firms in the future."
