Medicine & Health


1. Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
The project is the high-tech project with urgent need to develop. With the completed joint venture company established by Sino-Chemical as the main operator, it uses glucose as raw materials by biological fermentation and enzymatic method for the production of cephalosporins intermediates 7-ADCA. 7-amino-3-to acetoxy  eicosanoic acid (abbreviated 7-ADCA) is an important semi-synthetic cephalosporin antibiotic intermediates in the pharmaceutical industry for the synthesis of cephalexin, cephradine, cefaclor, cephalosporins esters and cefadroxil and other drugs, and these drugs are the antibiotics with large market demand.
1.1.2 Market Prospect
7-ADCA can be used to produce both domestic consumption clinical cephalexin, cephradine, and cefaclor cephalosporins and other great products, and domestic high incidence of infectious diseases, the price of 7-ADCA is much lower than directly from actinomycetes in extracts of cephalosporin C fermentation prepared into 7-ACA. From the current sales situation, sales of 7-ADCA for the synthesis of cephalosporins greatly exceeded in 7-ACA for the synthesis of cephalosporin drugs. Therefore, the clinical efficacy of these cephalosporins with better drug sales will rise rather than fall, which in turn will push up prices of 7-ADCA. In fact, the cephalosporin class of drugs within the last few years has been among the front five in the domestic hospital antibiotic sales charts. Thus, as the raw material to 7-ADCA cephalosporin drugs intermediates its sales are guaranteed. Secondly, the sales of 7-ADCA in the international market are promising. According to foreign media reports, the international market, due to pressure of price war for penicillin, old penicillin producing enterprises including Mexico, Sweden, Peru and Eastern Europe, have discontinued penicillin production, and changed to importing penicillin industrial salts from China. If our 7-ADCA products can enter a lower production costs and prices, the export prospects will be very bright.
1.1.3 Technical Analysis
The project mainly uses glucose as raw materials, by biological fermentation and enzymatic method for production. The technology has low production costs, availability of raw materials, and environmental-friendliness of production processes etc. features.
1.1.4 A dvantageous Conditions of Project Construction
(1) The policy conditions advantages
The project belongs to the high-tech enterprise, and is in line with the pharmaceutical industry development planning and industrial policy, and can obtain state and local government incentives in land, finance, taxation and other aspects. Accompanied by constantly improving circulation and other aspects of pharmaceutical manufacturing regulations, it provides a favorable legal environment for the development of the project.
(2) Technical personnel advantage
The project partner now has GMP standard drug treatment extraction plant, intermediate workshop, and central laboratory; it has advanced production technology and equipment, high-quality workforce, strong technical force, accurate detection methods and improved quality assurance system.
(3) The advantages of the industrial base
The existing facilities can serve this project, saving investment. The transformation is implemented in the existing plant. The company covers an area of 40,000 square meters; there is room for expansion and transformation, with lower construction costs.
(4) Raw material resources advantage
The project site has rich corn resources. The annual production capacity of enterprises using corn for producing glucose has also made a breakthrough on production, which can meet the needs of the project.
1.2 Content and Scale of Project Construction
1.2.1 P roduct Scheme and Scale
Annual output of cephalosporins intermediate 7-ADCA of 4000 tons.
1.2.2 Construction Content
Construct new buildings that cover an area of 100,000 square meters, with construction area of 68,000 square meters; construction of plant and supporting facilities, purchase of equipment 500 pieces (sets), complete three production lines.
1.3 Total Investment and Funds Raising of the Project
1.3.1 Total Investment of the Project (detailed in table 1)
The total investment is about 1.5 billion yuan.
Table 1:    List of Total Investment of the Project    Unit Ten thousand yuan
Name of Expense
Investment Amount
Percentage to Total Investment%
Construction investment
Interest incurred in construction period
Working capital
Total Investment of the Project
Note: the “ten thousand yuan” in the table is in RMB.
1.3.2 Funds Raising
Raised by enterprise.
1.4 Forecast of Economic and Social Benefits
1.4.1 Main Indicators for Economic Benefits Forecast (detailed in table 2)
Table 2:     List of main indicators for financial benefits forecast
Sales income
Ten thousand yuan/a
Normal year
Total profit
Ten thousand yuan/a
Normal year
Financial internal rate of return of all investment
After income tax
Financial net present value Ic=10%
Ten thousand yuan
After income tax
Payoff period of all investments (after tax)
Including construction period of 1 year
Profit margin of investment
Note: the “ten thousand yuan” in the table is in RMB.
The main reason why the project has good economic benefits is resulted by the fact that some of the existing facilities are regarded as sunk costs and not included in the project cost.
1.4.2 A nalysis of Social Benefits
1.5 Project Cooperation Ways
Joint venture, other ways can be interviewed.
1.6 What-To-Be-Invested by Foreign Party
Funds, foreign investment accounts for 49%, other ways can be interviewed.
1.7 Construction Site of Project
Gongzhuling City Chemical Industrial Park, that covers an area of 100,000 square meters.
1.8 Project Progress
2. Introduction to Partner
2.1 Basic Conditions
Name: Gongzhuling City Chemical Industry Park
Address: Amber Avenue, Gongzhuling
Legal representative: Wen Xiaoguang (deputy director of the CMC)
2.2 Overview
Gongzhuling Chemical Industry Park was approved and established by the Provincial Environmental Protection Bureau in April, 2011. It is one of the three Chemical Industrial Parks in Jilin. The park is located in Gongzhuling Lingdong Industrial Zone, the north the Hongyuan Street, the west of new 102 line, east of Dong’er Road, with park planning area of 1.4 square kilometers. It focuses on the development of organic chemicals, fine chemicals, polymer materials, new chemical materials, medicine and other life products. In accordance with the development policy of “integration of industrial development, public facilities integration, integrated logistics, environmental protection and security integration, and managed services integration”, the park, through optimizing the industrial structure, upgrades the industry level and actively develops recycling economy, finally form modern industrial park with focus on deep processing and high value-added products, and specialty chemicals product.
2.3 Contact Methods
Contact Person of Project Unit : Zhang Fengqing
Tel: 0434-6218111   18043411011
Fax: 0434-6237001

Contact methods of the project city (prefecture):
Contact unit: Gongzhuling Economic and Technical Cooperation Bureau
Contact person: Zhou Kemin
Tel: 0434-6219312   13504441655
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