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

  
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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