CBD facility nears finish in China’s Yunnan Province

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Chinese hemp company Chengzhi Hanmeng said the installation and commissioning of a CBD production facility in Yunnan province has entered the final stage.

According to hemp varieties currently planted in Yunnan Province and the design capacity of the Chengzhi Hanmeng factory, output of CBD crystals has been estimated at 4-5 tons annually, with output of broad-spectrum oil pegged at 8-10 tons per year, the company said. Other high-value products will be produced “according to market demand,” according to Chengzhi Hanmeng.


Sectors targeted

The company said its research of downstream applications revealed potential in the traditional Chinese medicine (TCM), bio-medical, food and beverage sectors on a global scale. Chengzhi Hanmeng holds intellectual property rights in extraction, processing and proprietary applications.

Chengzhi Hanmeng, a subsidiary of conglomerate Chengzhi Co. Ltd. obtained a license to plant hemp in Yunnan Province last year. The company said the license will help to strengthen its industrial hemp extraction and research operations and give it a direct source of raw materials in the future.

Parent company Chengzhi Co. Ltd. makes and sells traditional Chinese medicines, a key sector targeted for growth by Chinese officials and one into which derivatives from hemp make an enticing fit.

TCM rising

Chengzhi Co. Ltd. is among a growing number of Chinese health and bio-technology companies that are staking out positions in the hemp production chain, backed by investors driven primarily by the potential for CBD and other cannabinoids, and hemp’s fit in the TCM sector.

Many private companies have assets in Yunnan’s thriving CBD center, where the local government has set up the Kunming International Industrial Hemp Industry Park. Some estimates hold that CBD makers in Yunnan provide as much as one third of the global CBD supply.

Chengzhi Co. Ltd. also makes household chemical products such as detergents, toothpastes, and D-ribose, L-glutamine, as well as computer memory devices and other related and information technology products.


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