Brief Profiles Of Investment Projects
For China¡®s Agenda 21

 

Title Production of Date Foods and Extracts
Type Expansion of production capacity of date products
Description
The company's capacity for production of date food products will be expanded from the existing 5,500 tons per year to 20,000 tons per year. New lines for producing date foods and extracts will be designed and developed with the introduction of new techniques and equipment. The process will include the technique for soaking Chinese date and wolfberry, low-temperature extraction of the medicaments, concentration of the soaking liquid, granulating and drying technology.
Rationale
The products are naturally pure, have beneficial health effects, pleasant taste, low price, and are attractive to young and old. With the increase in living standards in China, the demand for health food is growing rapidly. The existing production capacity of the company can not meet the increased demand. The current annual domestic demand for these products is 10,000 tons and the expansion rate is projected at 30% per year. The implementation of the project also can provide jobs for 1200 low-income workers and can provide income for more than 20,000 farm families since local agricultural products are used as major inputs. The project is expected to be highly profitable.
Products
Annual output: Crystalline date extract: 10,000 tons; ginger and date extract: 1,500 tons; gold ginseng and date extract, 500 tons. The products will be packaged in plastic bags, glass bottles, paper boxes, tin cans, etc.
Location Tumen Industrial Zone, Zanhuang county, Hebei province
Available Information Pre-Feasibility Study, Detailed Project Description, Technical Study and Market Study
Total Investment (US$)

15.54 million

Foreign Currency (US$)

0.0

Financing

Co-operation Sought

Total Equity (US$)

5.44 million

Joint Venture

Of which Equity Foreign Partner (US$)

1.63 million

Compensation Agreement

Loan (US$)

10.1 million

Others(specify) (US$)
Indicators of Viability Return on Investment: 36.4%; Pay-back Period: 2 years; Break-even Point: 48%

INFORMATION ON SPONSOR

Name No. 2 Xinghua Food and Drink Factory Tel +86-311-4290129
Address Zanghuan county, Hebei province Fax
Annual Turnover (US$) 1993 4.7 million 1994 6.7 million 1995 7.98 million
Year of Establishment 1984 No. of Employees 450 Ownership collective
Fixed Assets (US$) 1.5 million Registered Capital (US$) 1 million
Land (ha.) 6 Building (m*m) 6,750 Equipment (US$) 865,000

 


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