The landlord of Hong Kong’s only beverage carton recycler on Thursday has given the firm another grace period of six months, so that it can operate at its current Yuen Long location until the end of June next year.

Mil Mill, which signed a three-year lease for the site in January 2019 and was later given a one-year extension, had previously been told to move out by the end of the year, as the Hong Kong Science and Technology Parks (HKSTP) wants to turn the industrial estate the firm is located in into a high-tech park.

The latest announcement came just two days after both sides spoke to the press separately, with the HKSTP saying it had done its best to help and that it would like to hold talks with the recycling firm.

In a statement, the HKSTP said the decision to offer Mil Mill another six months followed "active discussions with the Environment and Ecology Bureau".

"This final offer of a six months' grace period aims to strike a balance among various factors including the long-term development plan of the Innopark and the interests of all stakeholders in the I&T ecosystem," it said, adding that it would continue to liaise with the firm in its transition.

The Environmental Protection Department (EPD), for its part, said it will continue to keep in touch with the recycler and provide assistance.

"As soon as there are other short-term tenancy sites available for the recycling industry that will be open for tender, information will be provided for their consideration, and it is hoped that they can continue to provide services in Hong Kong," a statement read.

In response, Mil Mill said the announcement came "out of the blue", and it only learnt of the latest arrangements from the media, adding that it has yet to receive a reply from the Environment and Ecology Bureau and the EPD regarding its enquiries.

The recycling firm also said it is difficult to make proper follow-up arrangements with the new deadline, which it said is no different from what had been originally proposed by the HKSTP earlier this month.