China-based Yunnan Baiyao Group has just established a joint venture (JV) with Hong Kong investment holding firm Ban Loong Holdings to produce industrial hemp, a derivative of the cannabis plant that can be utilised in making a variety of products like rope, textiles, paper, bioplastics, biofuel and health foods.
Ban Loong will take a 51% stake and play a leading role in the JV, while Kunming-based Yunnan Baiyao will hold the remaining equity and play a supporting role, according to the memorandum of understanding signed by the 2 parties on 23 April. No further details on investment were released.
Yunnan Baiyao, whose primary product is the traditional Chinese medicine of the same name which is used as a pain reliever and to stop bleeding, will develop end products containing cannabinoid and industrial hemp ingredients, provide marketing support and do its best to obtain all the necessary licenses and permits.
Yunnan Baiyao already holds a 30% stake in Ban Loong, which mainly provides short-term private and corporate loans and is also engaged in the cooking oil, sugar and cosmetics trade.