| Brief Profiles Of Investment Projects
For China's Agenda 21 |
| Title | Food Production from Natural Seaside Vegetation | |||||||||||||||||||||||||
| Type | Expansion of production capacity | |||||||||||||||||||||||||
| Description | ||||||||||||||||||||||||||
| The existing production capacity of food products extracted from seaside vegetation, i.e. spartina angelica, will be expanded for the only company in China with a seaside location engaged in this type of enterprise. The project includes the design and development of three automatic production lines, purchase of production equipment and auxiliary facilities, and construction of buildings for factory, offices and living accomodations for workers. | ||||||||||||||||||||||||||
| Rationale | ||||||||||||||||||||||||||
| The company's production facilities are very favorably located with respect to the supply of inputs. The company is the only one to produce health foods from a seaside plant in China. The county owns seaside area of about 72,000 ha., of which about 30,000 ha. is developed by the company. Spartina angelica, the main raw material, grows on about 3,000 ha. of the seaside area from which the company is supplied. Currently, the products extracted from seaside vegetation are sold to Korea and Malaysia, but fall short of meeting this demand. The project will promote the rapid growth of spartina angelica, which plays an important role in expanding seabeach and bettering the condition of soil. These natural products are generally wholesome and free of pesticide residues, and involve no public hazard. | ||||||||||||||||||||||||||
| Products | ||||||||||||||||||||||||||
| Biomineral extract, liquid, dark brown, sweet flavor: 50 tons per year; Beverages: 30 million tins (330 ml each) and 12 million bottles (1250 ml each) per year. These pure, natural food products extracted from spartina angelica contain 14 essential trace elements and are rich in bioactive materials such as polyphenols and flavonoids, and have gained acceptance for their health benefits such as cardiotonic effects, enhanced immunity and resistance and prolonged life span. | ||||||||||||||||||||||||||
| Location | Wangang Development Area, Dafeng city, Jiangsu province | |||||||||||||||||||||||||
| Available Information | Feasibility Study, Technical Study and Market Study | |||||||||||||||||||||||||
| Total Investment (US$) | 6.26 million |
Foreign Currency (US$) |
4.3 million | |||||||||||||||||||||||
Financing |
Co-operation Sought | |||||||||||||||||||||||||
| Total Equity (US$) | 3.86 million |
Joint Venture | ||||||||||||||||||||||||
| Of which Equity Foreign Partner (US$) | 1.9 million |
Market Access | ||||||||||||||||||||||||
| Loan (US$) | 2.4 million |
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| Others(specify) (US$) | ||||||||||||||||||||||||||
| Indicators of Viability | Pay-back Period: 1.8 years; Return on Investment: 59%; Annual Gross Sales: US$ 17.2 million; NPV: US$ 10.6 million at the discount rate of 12% | |||||||||||||||||||||||||
INFORMATION ON SPONSOR | ||||||||||||||||||||||||||
| Name | Ocean Biological Health Production Co. | Tel | +86-515-3512087 | |||||||||||||||||||||||
| Address | 22 Jiankang Road, Dafeng city, Jiangsu province | Fax | ||||||||||||||||||||||||
| Annual Turnover (US$) | 1993 | 1.68 million | 1994 | 2.53 million | 1995 | 3.61 million | ||||||||||||||||||||
| Year of Establishment | 1989 | No. of Employees | 132 | Ownership | Corporation | |||||||||||||||||||||
| Fixed Assets (US$) | 1.71 million | Registered Capital (US$) | 1 million | |||||||||||||||||||||||
| Land (ha.) | 0.4 | Building (m*m) | 3,000 | Equipment (US$) | 1.2 million | |||||||||||||||||||||
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