Brief Profiles Of Investment Projects
For China's Agenda 21

 

Title Chestnut Mushroom Cultivation and Processing
Type Expansion of chestnut mushroom cultivation and processing
Description
The techniques for artificial cultivation of the chestnut mushroom were developed by the company in 1994. In the cultivation process spores are introduced into the decomposing branches and leaves pruned from chestnut trees which are abundant in the area. The results of trials conducted in 1994 and 1995 indicate that the product has great market potential. Gross sales in 1995 were about 2.5 million US$. In this project production capacity will be expanded from the existing 1,000 tons of fresh chestnut mushroom to the production of a variety of products, e.g. dry chestnut mushrooms and salt maceration chestnut mushrooms. Three chestnut mushroom processing lines will be constructed, for polysaccharide processing, dry processing and salt maceration processing.
Rationale
The Chestnut mushroom is the "King of Edible Mushrooms" with overall balanced nutritional content. Consumption over an extended period of this kind of mushroom has beneficial health effects such cancer prevention and cure, mitigating senility, controlling hypertension, preventing such diseases as arteriosclerosis, anemia, scurvy, cerebral thrombus, etc.. The demand for this kind of product is increasingly rapidly. The company is situated advantageously near resources and convenient transportation facilities. The product is highly profitable.
Products
Fresh chestnut mushroom, Dry chestnut mushroom: 200 tons per year; Chestnut mushroom polysaccharide: 200 tons per year; Salt maceration chestnut mushroom: 500 tons per year. Chestnut mushroom is a type of fungus used both for food and medicine. It is a highly nourishing food and has disinfectant and inoculating effects. Chinese chestnut trees are abundant in the mountain areas.
Location Qianxi county, Hebei province
Available Information Market Study, Technical Study, Detailed Project Description, Feasibility Study
Total Investment (US$)

8 million

Foreign Currency (US$)

0.98 million

Financing

Co-operation Sought

Total Equity (US$)

6.27 million

Joint Venture

Of which Equity Foreign Partner (US$)

2.51 million

Compensation Agreement

Loan (US$)

1.38 million

Others (US$)

0.35 million

Indicators of Viability Payback Period: 0.5 years, Return on Investment: 118%

INFORMATION ON SPONSOR

Name Northern Rare Spec. Resource Development Company Tel +86-315-5611666
Address Qianxi county, Hebei province Fax +86-315-5618932
Annual Turnover (US$) 1993 0.2 million 1994 0.5 million 1995 1 million
Year of Establishment 1992 No. of Employees 120 Ownership State
Fixed Assets (US$) 2 million Registered Capital (US$) 0.3 million
Land (ha.) 30 Building (m*m) 26,800 Equipment (US$) 1.08 million

 


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