Brief Profiles Of Investment Projects
For China's Agenda 21

 

Title Potted Wildflowers and Plants
Type Expansion of existing flower potting operation
Description   
The abundant quantity of old Rhododendron simsii stumps and other species of attractive flower and plants growing in the Jinggangshan mountains will be used for producing potted plants for the domestic market and for export at the company's facilities in Jinggangshan city, Jiangxi province. Hydroponic culture and grafting techniques will be used to develop plants that are ready for potting. The artistry of the flower arrangements is an important feature of the appeal of the product. The Rhododendron simsii is a precious species with a great variety of dramatic features, with evergreen leaves that can be trained for size and shape for different applications. With available techniques, the potted Rhododendron simsii can be induced to blossom throughout year, with a blooming period of over one month.
Rationale   
The potted landscape is becoming more popular in China. The company has already developed a brisk domestic market and a promising export market. Many large and medium cities, such as Shanghai, Guangzhou, Xiamen have ordered potted flowers from the company. About 20% of output will be exported to foreign countries. The abundant resources of old Rhododendron simsii stumps within the Jinggangshan Mountain area are favourable for batch producing, which reduces the cost of the finished product. The Rhododendron stumps are currently used in many cases as firewood for the local people and represents a considerable waste of valuable resources. The projected profitability of the project is substantial.
Products   
Rhododendron flower pots: 200,000 heads per year, blossoming period 1 month; Jinggang blue flowers: 50,000 heads per year; Pteridophyte plants (attractive leaf features): 20,000 heads per year.
Location Ciping town, Jinggangshan city, Jiangxi province
Available Information Pre-feasibility Study, Detailed Project Description, Technical Study, Market Study.
Total Investment (US$)

1.18 million

Foreign Currency (US$)

  

Financing

Co-operation Sought

Total Equity (US$)

1.18 million

Joint Venture

Of which Equity Foreign Partner (US$)

0.8 million

Co-operative Venture

Loan (US$)   

Compensation Agreement

Others (specify) (US$)      
Indicators of Viability Pay-back Period: 5 years; Return on Investment: 63%.

INFORMATION ON SPONSOR

Name Jiangxi Gannan Economic Development Ltd. Co. Tel +86-791-8510224
Address 294, Beijing west Road, Nanchang city Fax +86-791-8333704
Annual Turnover (US$) 1993 3 million 1994 3.4 million 1995 3.4 million
Year of Establishment 1992 No. of Employees 500 Ownership State
Fixed Assets (US$) 1.084 million Registered Capital (US$) 1.08 million
Land (ha.) 3 Building (m*m) 2500 Equipment (US$) 0.87 million

 


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