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Eu Yan Sang International Ltd ("Eu Yan Sang" or the "Group"), a leading traditional Chinese medicine (TCM) company, today (March 14) held a ceremony to launch its new quality assurance and processing facilities for Wisconsin American Ginseng in Hong Kong.
The new facilities were established following the Group's announcement in December 2006 of the award of an exclusive worldwide distributorship to Eu Yan Sang by the Wisconsin Ginseng & Herb Coop (GHC) and the granting of the sole right to use the Wisconsin Ginseng Seal? by Ginseng Board of Wisconsin (GBW).
The ceremony was officiated by Group CEO of Eu Yan Sang, Mr Richard Eu; President of GBW, Mr Joe Heil, Acting Director-General of Investment Promotion at Invest Hong Kong, Mr John Rutherford and Director of the US Agricultural Trade Office Hong Kong, Mr Philip A. Shull.
This agreement signifies a major collaboration between Asia's TCM sector and the Wisconsin American Ginseng industry. The ginseng growers registered with GHC, the official body that awards the Wisconsin Ginseng Seal?, have an aggregate output representing about 80% of the Wisconsin State's total ginseng output. Eu Yan Sang now holds the sole right to use the Wisconsin Ginseng Seal? worldwide.
Pursuant to the arrangement, Wisconsin American Ginseng contracted under the auspices of GHC will be shipped to Eu Yan Sang's GMP plant in Yuen Long Industrial Park in Hong Kong, where fingerprinting and processing are undertaken. The certified and processed Wisconsin American Ginseng will then be exported from the Hong Kong GMP centre to markets worldwide, furthering Hong Kong's lead as the world's QA pioneer and centre for TCM.
Mr Richard Eu said, "We are very excited about the collaboration with GHC and GBW for the worldwide exclusive distribution of Wisconsin American Ginseng and the granting of sole right to use the Wisconsin Ginseng Seal?. As a result of this collaboration, the quality and scientific validation of the purest and finest quality ginseng in the world are further enhanced for the benefit of consumers worldwide. This is part of our ongoing effort to harness nature and science to ensure greater credibility and acceptance of TCM, with the aim of promoting the use of TCM as part of mainstream healthcare and a modern lifestyle that calls for lifelong wellness. This exclusive distributorship also reaffirms our position as a leading global healthcare group with a TCM focus."
Eu Yan Sang (Hong Kong) Limited (Eu Yan Sang Hong Kong), a wholly-owned subsidiary of Eu Yan Sang, has committed an investment of HK$5 million for the establishment of new processing facilities and the construction of a new chill room at its newly commissioned Eu Yan Sang Centre in Hong Kong. Part of Eu Yan Sang Hong Kong's fingerprinting and other testing facilities will also be designated for the validation of Wisconsin American Ginseng.
Mr Joe Heil said, "This collaboration will benefit from the superior farming techniques and product quality of Wisconsin growers on one hand, the brand recognition and distribution networks of Eu Yan Sang on the other. Our combined commitment to leverage our respective strengths will create synergies that would result in better market reach and stronger sales performance."
Mr John Rutherford said, "Invest Hong Kong is proud to be the catalyst that brought together Eun Yan Sang and the Ginseng Board of Wisconsin. This innovative project will surely strengthen Hong Kong's position as a leading centre for the development and quality assurance of TCM products. Our city has an established track record of integrating Eastern and Western medical and health treatments, and our business-friendly environment, world-leading logistics network and stringent intellectual protection legislation makes Hong Kong the natural place to develop this collaboration. We look forward to tracking this exciting project which brings new ideas, technology and jobs to Hong Kong."
"We are also delighted to be able to celebrate this expansion of Eu Yan Sang's presence in Hong Kong, only four months after the establishment of the company's new manufacturing facilities in Yuen Long," Mr Rutherford said.
Mr Richard Eu added, "To achieve maximum efficacy and the expected therapeutic effects of natural herbs, careful attention is always paid to their origin, when they are harvested and how they are processed. In the next step, we will apply the verification test results and work further with GHC and GBW to extend the quality consistency process to the agricultural end."
Eu Yan Sang expects revenue in the first year arising from the distributorship to exceed S$10 million, with the potential to grow to more than S$40 million within the next three to five years. In the current financial year ending 30 June 2007, the Group will re-invest the earnings from this distributorship into the marketing and promotion of Wisconsin American Ginseng by Eu Yan Sang.
Listed on the Singapore Exchange, Eu Yan Sang International Limited is a progressive, global healthcare company with a core focus on Traditional Chinese Medicine (TCM). Eu Yan Sang has an extensive distribution network comprising 120 Eu Yan Sang branded retail outlets in Hong Kong, Malaysia and Singapore. The Group also operates a chain of 20 TCM clinics in Singapore, Malaysia and Australia; 13 TCM clinics in Singapore and Malaysia; three specialist TCM clinics in Singapore; and four "YourHealth" integrative medicine centres (IMCs) in Australia. For more information about the Eu Yan Sang Group, please visit www.euyansang.com.
The Ginseng Board of Wisconsin (GBW) was established in 1986 as a non-profit making organization representing registered Wisconsin Ginseng growers. The mission of the GBW is to represent Wisconsin Ginseng producers as the worldwide leader of the American Ginseng industry, committed to the advertising, promotion and sale of Wisconsin Ginseng. The GBW is managed by an elected board of seven Ginseng growers, which functions under a marketing order managed by the Wisconsin Department of Agriculture Trade & Consumer Protection. For more information, please visit www.ginsengboard.com.
Invest Hong Kong is the Hong Kong Special Administrative Region Government department charged with encouraging and facilitating inward investment into the city by providing the support needed to establish or expand a business presence here. For more information, please visit the website at www.investhk.gov.hk.
Ends/Wednesday, March 14, 2007
Issued at HKT 18:24
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