Extraction Project of Chinese Herbal Pieces and Plant Raw Materials in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Name

中国（云南）自由贸易试验区德宏片区中药饮片及植物原料提取项目

Extraction Project of Chinese Herbal Pieces and Plant Raw Materials in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Industry Involved

Biomedicine and great health industry

Site

International Import and Export Bio-industrial Park in Wanding, Ruili, Dehong Prefecture

Project Description

The project mainly relies on the geographical advantage of Ruili bordering Myanmar and the raw material advantage of Myanmar's rich resources of Chinese herbal medicines, for the extraction of Chinese herbal pieces and plant raw materials. It is to develop plant extract products and Chinese herbal pieces represented by plant bulk drugs, essential oils, spices and food additives. It is expected to become the extraction base of Chinese herbal pieces and plant raw materials in Ruili and the intensive processing base of Chinese herbal medicines imported from Myanmar.

Content

Proposed floor area: 60 mu;

Construction period: 1 year

The main construction contents include product R&D center, product production workshop, product testing center, storage and refrigeration area for import and export raw materials and finished products, and supporting infrastructure.

Supporting Conditions

1. Ruili is located in the southwest border of China, bordering Myanmar on three sides, and has two national Class I ports. Ruili Port is also the designated port for Chinese herbal medicines to enter the country, with obvious geographical advantages. Ruili has a warm humid subtropical monsoon climate, with no severe cold in winter and no intense heat in summer.

2. Myanmar is located in the tropics and is rich in Chinese herbal medicine resources. The vast majority of medicinal materials are wild, and the origin of medicinal materials is all over most parts of Myanmar. The distribution centers of medicinal materials are mainly in Mandalay and Shan State, which has formed a concentrated market for purchasing medicinal materials. With the development of China's pharmaceutical industry and the enhancement of people's awareness of health care, many wild resources of medicinal materials in Myanmar can no longer meet the social need, and artificial planting of medicinal materials begin to develop day by day. At present, the Chinese herbal medicines planted in Myanmar include Amomum villosum, areca catechu, yellow grass, senna leaf, wild jujube, radix curcumae and konjac.

3. Dai medicine in Dehong Prefecture has a long history of 2,500 years. Dai medicine has been listed as one of the "four major ethnic medicines" (Tibetan, Uygur, Mongolian and Dai) with its unique theoretical system and writing, distinctive local characteristics and ethnic characteristics.

4. In 2018, a total of 7,451.9 tons of Chinese herbal medicines were imported at Ruili Port. Jiegao Port of Ruili is already the port with the largest customs clearance volume of imported Chinese herbal medicines in China. There are more than 30 kinds of Chinese herbal medicines imported from Ruili, such as areca catechu, pericarpium arecae, medicine terminalia fruit, fructus viticis, cinnamon, Amomum villosum, dendrobium, fructus psoraleae, henbane, turmeric, uncaria, honeysuckle and oroxylum indicum.

5. Wanding has one national Class I port, two entry and exit passages, one national border economic cooperation zone and one provincial bio-industrial park

6. The park has developed traffic conditions and complete infrastructure. There are three main roads in the park. At present, the water, electricity and roads basically meet the mobilization and construction requirements of the project, and the final land for project use will meet the requirements of "seven availabilities and one leveling".

Investment Estimate and Fund Raising

Investment estimate: The total investment is CNY 120 million, including CNY 50 million raised by enterprises, CNY 50 million raised by financial institutions and CNY 20 million from other funds.

Fund raising: Self-raising by enterprise.

Preferential Policies Applicable

In addition to the national western development policy, the project can also enjoy the support policy of Dehong Pilot Free Trade Zone. The Trial Measures for Investment Promotion in Dehong Area of China (Yunnan) Pilot Free Trade Zone provides guarantee for enterprises to settle in the park from various aspects such as industrial support, talent support and investment factor guarantee.

Market Prediction (Analysis)

(1) The plant raw material extraction industry will maintain rapid development

The market has a high preference for natural medicines or food materials, and the export prospect of plant extracts is good. With the continuous introduction of favorable industrial support policies, the industry will continue to maintain a high-speed development state.

(2) The market prospect of Chinese herbal pieces is broad

The market demand for Chinese herbal pieces will be the core driving force to promote the scientific research and production of Chinese herbal pieces in Ruili. According to relevant statistics, in the future, Chinese herbal pieces will occupy a larger pharmaceutical market, with broad market prospects.

(3) Centralized and intelligent development

With the continuous breakthrough of biotechnology and the guidance of policies, the concentration of pharmaceutical industry in Ruili will gradually increase. In the future, the core development areas, such as Wanding International Import and Export Bio-industrial Park, will continue to introduce technical talents with the coordinated development of the region, and the concentration of biomedical industry will continue to increase. The development tide of artificial intelligence and Internet will drive the biomedical industry to develop in the direction of intelligence and digitalization. This will strengthen the information transmission between scattered industrial chains.

Profit Model and Preliminary Benefit Analysis

Analysis of profit model: After the completion of the project, it is estimated that about 5,000 tons of imported and domestic plant raw materials can be intensively processed every year. The main income will be obtained from the sales of biological agents, Chinese herbal pieces and plant raw material extracts (products), as well as the technology transfer. It is estimated that the main business income will reach CNY 80 million, the return on investment will be 16.5% and the payback period will be 6 years (excluding the construction period).

Social benefits: It can give full play to the advantages of overseas raw material resources and the geographical advantages of domestic ports, increase the added value of imported Chinese herbal medicines, promote industrial transformation and upgrading, increase local taxes and promote employment. It is of great significance to expand the markets in South Asia and Southeast Asia, and promote the trade between China and Myanmar.

Risk Analysis

The production and domestic sewage will be uniformly discharged into the sewage pipe network of the park after being treated by the enterprise itself to reach the Class I Standard. The scientific greening will be implemented. Also, during the operation period of the project, the production waste will be treated specially.

Cooperation Pattern

Joint venture, cooperation, equity participation, PPP, etc.

Contact Information

Contact Unit: Investment Promotion Bureau of Ruili City

Contact Person : Yao Chenghu

Tel.: 13988252077

Fax: 0692 -4141253