MYS Group, Partners to Fork Out USD72.4 Million on Hemp
Tang Shihua
DATE:  May 17 2019
/ SOURCE:  yicai
MYS Group, Partners to Fork Out USD72.4 Million on Hemp MYS Group, Partners to Fork Out USD72.4 Million on Hemp

(Yicai Global) May 17 -- Chinese packaging maker MYS Group and its partner have become the latest Chinese companies to jump aboard the hemp bandwagon.

They will jointly invest CNY500 million (USD72.4 million) to grow about 500,000 mu (33,333.3 hectares) of hemp in China's southwestern Yunnan province, extract active ingredients and process spin-off products, MYS Group said in a statement last night. 

The Shenzhen-based company struck a cooperation deal with the government of the Wenshan Zhuang and Miao Autonomous Prefecture and Kunming-headquartered Yunnan Gugeng  Agriculture Technology Development yesterday. The parties aim to build the area into  China's major base for hemp growing and deep processing and a development center for new products. 

MYS and Gugeng will set up a joint venture firm to grow and process the crop. The shareholding ratio of the JV has yet to be determined. The government will provide land and policy support based on local rocky desertification control and poverty relief policies.

The staged project will gradually tap into every sector of the industry chain, cultivating, processing and extracting the active ingredient cannabidiol and developing nutritious food, beverage and health care products from cannabis seed protein and oil, the statement explained. Gugeng Agriculture, the partner which has a license to grow hemp in Yunnan, has thus far not qualified to process it, the statement added.

Hemp has been all the rage in China of late as many listed firms' shares have hit the daily 10 percent limit up bourse rules impose after they announced plans to break into the field.

Editor: Ben Armour

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Keywords:   Hemp,Planting and Processing,Yunnan,MYS Group