Hutchison Whampoa has joined forces with the mainland's largest Chinese medicine manufacturer to develop traditional medicine products and promote them on the international market.
Three parties - Tong Ren Tang Science and Technology Development, Hutchison (China) subsidiary Hutchison Whampoa Chinese Medicine Investment and Beijing Enterprise parent Beijing Holdings - yesterday held a signing ceremony to create joint-venture Tong Ren Tang Hutchison (Hong Kong) Pharmaceutical.
Chinese medicine manufacturer Tong Ren Tang is the wholly owned subsidiary of Beijing Tong Ren Tang Group, which has a 330-year history and has some of the most famous brands of Chinese medicine.
Investment in the project is HK$200 million, with Hutchison owning 50 per cent, Tong Ren Tang 40 per cent and Beijing Holdings taking up 10 per cent. Registered capital is HK$15 million.
'It is a significant strategic alliance for Hutchison and Tong Ren Tang,' Beijing Holdings investment manager Jiang Xinhao said.
'The joint venture will allow Hutchison to leverage on Tong Ren Tang's name brand, premier products, and valued manufacturing process, while enabling Tong Ren Tang to take advantage of Hutchison's international distribution channel, financial resources, and expertise in marketing.'
'Together they will be able to modernise the traditional products and make it a success in the international market,' Mr Jiang said.