Production Project of Medical Supplies Consumables in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Name

中国（云南）自由贸易试验区德宏片区医疗用品耗材生产项目

Production Project of Medical Supplies Consumables in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Industry Involved

Biomedicine and great health industry

Site

International Import and Export Bio-industrial Park in Wanding, Ruili, Dehong Prefecture

Project Description

Relying on the advantages of the raw materials resources in Ruili, neighboring cities/counties and Myanmar, and the pharmaceutical industry cluster and market demand in Ruili, the project plans to introduce investors to manufacture Class I, Class II and Class III medical devices and consumables, mainly building medical consumables product R&D center, product production center, product testing center, warehousing and logistics center, product sales center and other basic supporting facilities. It is to build a medical device industrial base with such functions as warehousing, logistics, manufacturing, technology R&D, and sales.

Content

The main construction contents of the project include medical consumables product R&D center, product production center, product testing center, warehousing and logistics center, product sales center and other supporting facilities.

Construction period: 1 year

Land area: 50 mu

Supporting Conditions

1. Ruili, located in the southwest border of China, is the most convenient passage leading to Myanmar and radiating to South Asia and Southeast Asia. With obvious geographical advantage, its export commodities can radiate to Southeast Asia. There are more than ten public hospitals in Dehong Prefecture (township health centers and private hospitals are not counted), and the consumption of common medical consumables, high-value consumables and test reagents accounts for about 20% of the income of medical units.

2. Wanding International Import and Export Bio-industrial Park is positioned as a food and bio-pharmaceutical processing base. In the park, there are three main roads. At present, the water, electricity and roads basically meet the mobilization and construction requirements of the project, and the final land for project use will meet the requirements of "seven availabilities and one leveling". The park guarantees the timeliness and safety of electricity, water and road use of the project. Generally, the industrial electricity price is CNY 0.47/kWh, the industrial water price is CNY 2.65/ton, and the industrial gas price is CNY 2.59/m3. Labor force:

3. The expressway (G56 Hangzhou-Ruili Expressway) has been connected in the project area, and the park is about 15 kilometers away from the entrance of Wanding Expressway. In the park, there is a national Class I port (Port of Wanding), through which raw materials can be directly imported. The west line of Dali-Ruili Railway, which is under construction and is scheduled to open to traffic in 2020, has a passenger and freight marshalling station in Wanding. The products can be directly exported to such ports as Yangon Port and Kyaukpyu without passing through the Strait of Malacca, thus entering the Indian Ocean.

 4. According to statistics, nearly 100,000 Burmese laborers have entered China to work. In addition to residents from China-Myanmar border areas, there are also a large number of Burmese employees from Lower Myanmar working in Dehong Prefecture. Labor resources are abundant with low price.

5. Located in the main urban area of Ruili, Dehong Free Trade Zone is the core engine of economic development in Ruili in the future. The construction of FTA will speed up the economic development of Ruili. There are many favorable factors such as policies and development conditions available in the FTA.

Investment Estimate and Fund Raising

The total investment is CNY 80 million, including CNY 40 million raised by enterprises, CNY 30 million raised by financial institutions and CNY 10 million from other funds.

Preferential Policies Applicable

In addition to the national western development policy, the project can also enjoy the support policy of Dehong Pilot Free Trade Zone. The Trial Measures for Investment Promotion in Dehong Area of China (Yunnan) Pilot Free Trade Zone guarantees the production of enterprises from various aspects such as industrial support, talent support and investment factor guarantee, and strongly promotes the project construction.

Market Prediction (Analysis)

Myanmar (Southeast Asia) market or domestic market. South Asia and Southeast Asia together have a population of nearly 2.4 billion. Therefore, the medical device market in these areas has huge demand and market capacity. However, South Asia and Southeast Asia countries generally have a poor industrial base, weak medical device industry, and a large number of medical technologies and products need to be imported. The medical device market also shows a rising trend of rapid development.

At present, China's medical device industry is a strategic emerging industry supported by the state, which is developing rapidly with an average annual growth rate of about 23%. Compared with foreign medical devices accounting for 42% of the total size of the pharmaceutical market, domestic medical devices only account for 14% of the total size of the pharmaceutical market, and thus there is still much room for improvement.

There are about 24,000 medical and health institutions in Yunnan Province, including more than 1,000 hospitals. However, the medical device industry in Yunnan started late, and there are only a handful of medical device manufacturers, and the market needs a large amount of products.

Profit Model and Preliminary Benefit Analysis

After the completion of the project, it is estimated that at least two production lines for Class I, II and III medical consumables can be completed, and the initial operating income is expected to reach more than CNY 60 million. This project can promote industrial transformation and upgrading, increase local tax revenue and promote employment. Also, it is of great significance to expand the markets in South Asia and Southeast Asia and promote the trade between China and Myanmar.

Risk Analysis

The production and domestic sewage will be uniformly discharged into the sewage pipe network of the park after being treated by the enterprise itself to reach the Class I Standard. The scientific greening will be implemented. Also, during the operation period of the project, the production waste will be treated specially.

Cooperation Pattern

Joint venture, cooperation, equity participation, PPP, etc.

Contact Information

Contact Unit: Investment Promotion Bureau of Ruili City

Contact Person : Yao Chenghu

Tel.: 13988252077

Fax: 0692 -4141253