Health product manufacturer sets up Asia-Pacific HQ in Hong Kong

A New York-based manufacturer of herbal health supplements, Dragon River, announced today (October 20) the establishment of its Asia Pacific Headquarters in Hong Kong.

Recognising that Traditional Chinese Medicine (TCM) has significant potential in world markets, the US company produces health drinks made from Luo Han Kuo fruits grown in China's Guangxi Province, with Asia, the US and Europe as its target markets.

The company also has a complete line of TCM products to be introduced over the next two years.

"There was never any doubt that Hong Kong is an ideal regional headquarters for our business," said the Chairman and Chief Executive Officer of Averdale International, Mr Robert P McGraw. Averdale is an investment and consulting company that developed the business plan for Dragon River.

"The general business climate in Hong Kong is attractive to Dragon River, especially with the government's identification of TCM as a key development sector," Mr McGraw said.

"We appreciate the government's effort to bring focus and support and to establish universal credibility through developing responsible guiding regulations to this industry."

As a result, Dragon River plans to set up a research and development centre in Hong Kong.

Mr McGraw said Hong Kong offered a vibrant and dynamic retail environment. "It is a truly cosmopolitan city, which benefits from the continuous traffic of tourists and business people. For the retail sector, this creates demand not only in the local market but also in southern China and in other countries in Asia," he said.

In welcoming the decision, the Associate Director-General of Investment Promotion at Invest Hong Kong, Mr Simon Galpin, said he was pleased about Dragon River's plans to establish a research and development centre in Hong Kong.

"This is a vote of confidence in Hong Kong's growing Traditional Chinese Medicine industry," he said.

"Dragon River will also be able to take advantage of the new CEPA arrangements, which particularly benefit TCM companies, facilitating co-operation and exchange between Hong Kong and the Mainland."

Traditional Chinese physicians have been using the Luo Han Kuo fruit for more than 300 years to alleviate coughing and respiratory complaints. It also boosts the human immune system. Dragon River's products meet the requirements of the Hong Kong Standards and Testing Centre for ready-made TCM.

Ends/Monday, October 20, 2003