| Brief Profiles Of Investment Projects
For China's Agenda 21 |
| Title | Production of Saponin and Wolbachia, a Hormonal Medicine | ||||||||||||||||||||||
| Type | Expansion and modernization of production | ||||||||||||||||||||||
| Description | |||||||||||||||||||||||
| The capacity of the existing plant for the production of Wolbachia will be expanded from the current 45 t/y to 80 t/y. Wolbachia is a major ingredient in the production of hormonal medicines. A new production technology for the intermediate products, i.e. yam saponin, alchohol and methylol cellulose will be designed and developed. The main input material is Dioscorea nipponica, which is a plant growing wild in the mountainous areas close to the factory. The plannned capacity requires 9,000 tons of Dioscorea nipponica, which can be obtained from gatherers in the five counties surrounding the factory. Total production of Dioscorea nipponica in China is about 168,000 tons. Wolbachia is extracted in secondary processing of the intermediate products. | |||||||||||||||||||||||
| Rationale | |||||||||||||||||||||||
| The existing production capacity can not meet current domestic and international demand for wolbachia. The domestic demand is about 500 tons/year and about 300 tons/year is exported. The new technology will comprehensively utilize Dioscorea nipponica. The material consumption and pollution will be reduced. Waste materials are eliminated using the new technology. The profitability of the project is very high. The implementation of the project also can promote the development of Taihang Mountain Area by providing commercial opportunities for gatherers of Dioscorea nipponica. | |||||||||||||||||||||||
| Products | |||||||||||||||||||||||
| Wolbachia, a raw material for producing hormonal medicines, production capacity: 80 T/Y; Methylol cellulose, used in petroleum and chemical industry, production capacity: 1920 tons/year | |||||||||||||||||||||||
| Location | Zaoqiang county, Hengshui city of Hebei province | ||||||||||||||||||||||
| Available Information | Pre-feasibility Study, Detailed Project Description, Technical Study, including Environmental Impacts, and Market Study | ||||||||||||||||||||||
| Total Investment (US$) | 11.5 million |
Foreign Currency (US$) |
0.0 | ||||||||||||||||||||
Financing |
Co-operation Sought | ||||||||||||||||||||||
| Total Equity (US$) | 5 million |
Joint Venture | |||||||||||||||||||||
| Of which Equity Foreign Partner (US$) | 2 million |
Compensation Agreement | |||||||||||||||||||||
| Loan (US$) | 6.5 million |
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| Others(specify) (US$) | |||||||||||||||||||||||
| Indicators of Viability | Pay-back Period: 3 years, Break Even Point: 30%, Return on Investment: 72% | ||||||||||||||||||||||
INFORMATION ON SPONSOR | |||||||||||||||||||||||
| Name | Hebei Qiangfeng Chemical Medicine Co. Ltd | Tel | +86-318-8224428 | ||||||||||||||||||||
| Address | 82 Jianshe Road, Zaoqiang county, Hebei province | Fax | |||||||||||||||||||||
| Annual Turnover (US$) | 1993 | 11 million | 1994 | 15 million | 1995 | 19.1 million | |||||||||||||||||
| Year of Establishment | 1980 | No. of Employees | 282 | Ownership | Corporation | ||||||||||||||||||
| Fixed Assets (US$) | 2.1 million | Registered Capital (US$) | 0.72 million | ||||||||||||||||||||
| Land (ha.) | 3.5 | Building (m*m) | 5400 | Equipment (US$) | 1.5 million | ||||||||||||||||||
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