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 it has completed seeding its first fields (89 acres) based in Heilongjiang Province through the company’s agreement with local Hegang City municipal authorities.
Starting with CBD
“Heilongjiang Province has geographic characteristics favorable for growing industrial hemp including favorable climate and soil conditions,” said Yuying Zhang, Chairman and CEO at Shineco. “We plan to cultivate this land using specialized high CBD content seeds in an effort to develop high quality CBD products.”
The partners plan to eventually 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 be conducting joint research and development on several new varieties of industrial hemp, and also will establish a CBD Extraction Industrial Park, an Industrial Hemp Research Center affiliated with China’s Academy of Science, and an Industrial Hemp Workstation sponsored by the City of Hegang.
CBD industrial park
As part of the Agreement, both parties expect to invest about $ 22 million to establish the CBD Extraction Industrial Park with annual production of 30 tons of CBD extract.
The facilities will also turn out other raw medical materials; 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 U.S. NASDAQ exchange, is incorporated in Delaware, USA. Headquartered in Beijing, the company makes Chinese herbal medicines and specialized textiles, and turns out organic agricultural produce.