Sanlux to Expand Its Rubber Business, Trial Medical Hemp in Laos
Xu Wei
DATE:  May 08 2019
/ SOURCE:  yicai
 Sanlux to Expand Its Rubber Business, Trial Medical Hemp in Laos Sanlux to Expand Its Rubber Business, Trial Medical Hemp in Laos

(Yicai Global) May 7 -- Chinese rubber machine and auto belt maker Sanlux recently penned a framework agreement with the government of Laos' Phongsaly province to cooperate to expand the local natural rubber and hemp sectors.

The signing of this memorandum of understanding seeks to achieve Sanlux's future development strategies, fully utilize its current overseas land resources, and promote the industrial expansion of natural rubber, which is the company's main raw material, the Shaoxing, Zhejiang province-based firm said in a statement today. 

Sanlux unit Wuxi, Jiangsu province-based Rongtai Rubber owns the rubber plantation, which extends over more than 5,002 hectares in the province, and the unit has independently invested in more than 1,800 hectares, while it plants and manages the remaining 3,202 jointly with local farmers.

The company will invest more in the current rubber plantation to increase its processing capability and evaluate the prospects of deep processing to eventually create a complete industry chain from planting and processing of raw materials to production of finished rubber products using these existing resources to revitalize inventory assets, transform products and business and seek new growth.

The company will also leverage Rongtai's local resources to collaborate with the national government on hemp for medical uses at the nation's behest and conduct corresponding pilots in the province, the statement continued, adding that it will also invest in the refining and processing of cannabidiol, which is being hailed as a new wonder drug, based on these trials.

This investment will expand the firm's production lines, create new profit growth points profit, raise its comprehensive competitiveness and accelerate its long-term development. The risk of the project failing to achieve the expected goals will not be excluded if it cannot complete timely research, development and upgrade of needed technologies. 

This contract is an agreement that expresses mere intentions and the official one has not yet been signed, so the influence of this project on the firm's operating performance is still unpredictable, the statement also noted.

Editor: Ben Armour

Follow Yicai Global on
Keywords:   Sanlux Co.,Laos,Rubber,Industrial hemp