Hutchison Whampoa has set up a joint venture to make Chinese medicine - the first such Sino-foreign venture in Shanghai. Shanghai Hutchison Pharmaceutical, a 50-50 joint venture between the Li Ka-shing-controlled conglomerate and a subsidiary of the municipal-owned Shanghai Pharmaceutical, will invest 220 million yuan (about HK$206.14 million) in producing pharmaceutical-grade traditional Chinese medicine. Hutchison and the A share Shanghai Pharmaceutical have each invested 40 million yuan in the venture, which employs 450. Shanghai Pharmaceutical makes Chinese medicine branded under the company name at four different plants. The joint venture said it aimed to develop into a top-tier modern Chinese enterprise in five years, and was looking to explore export markets with the help of Hutchison's global sales network. In March, Hutchison set up a similar joint venture, Hutchison Healthcare, in Guangzhou. Hutchison will take an 80 per cent share in the 245 million yuan venture, which will specialise in manufacturing health-care and Chinese medicine products. Hutchison is also involved in a joint venture with Beijing Tong Ren Tang, which develops naturally grown Chinese medicine products.