Shineco, Chinese herbal medicine and plant-based health and wellbeing producer, along with its subsidiary Xinjiang Tiankunrunze Biological Engineering, (Tiankunrunze) will formally team up with leading high-tech biomass refining company, Beijing Zhongke Biorefinery Engineering Technology to set up the ICAITR.
The Biorefinery is financially supported by the Chinese Academy of Sciences Institute of Process Engineering.
The strategic cooperation agreement, which was entered into on 2nd May 2017, sets out that Tiankunrunze, Shineco and Biorefinery will each own 45%, 35% and 20% of the equity interest of ICAITR, respectively.
Following this announcement, on 9th June 2017, the companies stated that together they will launch the ICAITR.
Shineco and Tiankunrunze will invest RMB 5 mn (€4.5 mn) as its registered capital, and the Biorefinery will provide technical investment including the patent for 'Steam Explosion Degumming' along with other resources.
“Together with our strategic partners, we are looking forward to accelerating our product development and manufacturing technology innovation with the core technology of Steam Explosion Degumming,” said Yuying Zhang, Chairman and Chief Executive Officer of Shineco.
As part of its wider strategy, the ICAITR will act as a public service platform for the domestic Apocynum industry. It will through operate a technology incubation base to transform technology into end-products for the cosmetics industry by utilising the natural plant-based ingredient.
Apocynum, a member of the plant family, is an established industry in China and is commonly used in herbal medicines and health and wellbeing based products.
Shineco plans to boost its technological innovation to help attain sustainable development within the Apocynum industry and help businesses use the ingredient and commercialise its processing technologies.
"The Institute of Chinese Apocynum Industrial Technology Research offers a unique and important opportunity for us to develop new refining technology for the Apocynum industry,” added Zhang.
Zhang highlighted how the new alliance will increase the number of plant-based products available: "Through the collaborative efforts of the Biorefinery, we expect the utilisation of advanced scientific research, human resources and collective data will transform research results into successful products."