Warehouse operator Henry Diaper plans to set up a metal warehouse in Hong Kong, with a temporary agreement expected to be reached as soon as this month, according to chairman John Harvey.

The UK-based firm is exploring potential collaboration with three Hong Kong warehouse companies, all of which are large local players with existing warehouse capacity, Harvey said in an interview with the Hong Kong Economic Journal.

He is confident that the warehouse will be approved by the London Metal Exchange, with the process expected to take about two months.

The potential warehouse site is reportedly in Tuen Mun.