The plant was built on a 1.4 hectares (3.5 acres) of reclaimed land along Gin Drinkers Bay, Kwai Chung, near Pillar Island and the Rambler Channel.

A contract to build the facility, contested by seven international companies, was awarded to Clarke Chapman-John Thompson of Gateshead, England, and signed on 29 November 1973.

[2] Unlike older incinerators in Hong Kong, the Kwai Chung plant was fitted with an electrostatic precipitator to reduce the pollution emitted.

In addition, the 150-metre-tall chimney at Kwai Chung was taller than those at the Kennedy Town and Lai Chi Kok incinerators, so that pollutants would be dispersed at a higher altitude.

After considering the effects of air pollution on the environment and public health, it was decided to cease using incineration to dispose of solid waste.