Chinese hemp firm Shineco and the Xingshan People’s Government of Hegang City in Heilongjiang Province say they will actively promote the development of the hemp industry by setting up vertically integrated enterprises from farm to finished products, with the goal to “form a local industry network and to achieve a new industrial scale economy.”
Shineco announced last week that it has completed the planting of its first fields (89 acres) in Heilongjiang Province through the company’s agreement with local municipal authorities in Hegang City.
Starting with CBD
“Heilongjiang Province has favorable geographical characteristics for the cultivation of industrial hemp, including favorable weather and soil conditions,” said Yuying Zhang, president and chief executive officer of Shineco. “We plan to cultivate this land using specialized seeds of high CBD content in an effort to develop high quality CBD products.”
The partners plan to finally develop between 3,000 and 5,000 acres in a “high quality industrial hemp project,” Shineco said in a press release.
The company said it will carry out joint research and development on several new varieties of industrial hemp, and will also establish a CBD Industrial Extraction Park, an Industrial Hemp Research Center affiliated with the Chinese Academy of Sciences and a Workstation of industrial hemp sponsored by the City of Hegang.
CBD Industrial Park
As part of the Agreement, both parties expect to invest around $22 million to establish the CBD Industrial Extraction Park with an annual production of 30 tons of CBD extract.
The facilities will also annually produce other medical raw materials plus 2,000 tons of industrial hemp fiber; 500 tons of hemp seed oil; and 4,000 to 6,000 tons of hemp leaves, Shineco said.
Shineco, traded on the NASDAQ exchange in the United States, is incorporated in Delaware, USA. Based in Beijing, the company manufactures Chinese herbal medicines and specialty textiles, and produces organic agricultural products.