Project Background and Resources Situation: Qinghai LvYuan Industrial Co. Ltd has been set up after the overall acquisition of the original 2003 Qinghai Haiwei Eel Feedstuff Company, now having a refined potato starch production line with an annual output of 7,000 tons. The company currently has 150 employees, including various professional and technical staff of 50 people and 28 management personnel. It has a day production volume of potato starch of 40 tons, of which the product quality is higher than the state enacted standards (GB8884--88). In 2004, the product has passed the ISO9001: 2000 international quality certification, as well as being awarded the title of "agricultural industrialization leading enterprise in Haidong area". The undertaking of the modified starch production line project with an annual output of 10,000 tons is based upon the rich potato resources in Haidong area and the domestic market demand of potato starch which is 400,000—500,000 tons, as well as the market demand space which currently has a production capacity of less than 300,000 tons. In 2005, the total potato planting area is 820,000 mu in the region with a gross output of 190,000 tons (converted into grain) and an average yield of 230 kilograms/mu (converted into grain). Potatoes produced in Huzhu County are large, plump and with high starch content, which are considered as the potatoes of the best quality among domestic potatoes. Modified starch potato, the refined product of potatoes by deep processing, has the characteristics of unique viscosity, water absorption and swelling, as well as high content of protein and low content of sugar, which is the high quality raw material that has no other alternative or a marked decline in the quality once being substituted. Modified starch market involves food, medicine, chemicals, textiles, construction materials and other industries, and the market demand of it has increased gradually in recent years.The project is based upon the various starch production enterprises in the neighborhood, planning to construct a production line with an annual output of 10,000 tons of modified starch over the original production line of Lvyuan Company so that the project has the advantages of less investment, rapid development and short payback period.

Project Name: Modified starch production lines with an annual output of 10,000 tons.

Construction Unit: Qinghai Lvyuan Industrial Co., Ltd. 

Construction Site: The eastern ring road of WeiYuan Town in Huzhu County

Construction Content: Build a production line with an annual output of 10,000 tons of modified starch and supporting facilities and equipment. In addition, to bring in stone removing machine, washing machine, the entire cyclone separator unit and drum drying machines from abroad. Other supporting equipment will use domestically produced equipment.

Gross Investment: 53.50 million Yuan

Economic Benefits: the annual sales income: 53 million Yuan; profit and tax: 19.98 million Yuan.

Project Progression: preparatory work for the project and the feasibility study report
Infrastructure Condition: Infrastructure like water, electricity, transportation and communications facilities are available and convenient. It has available construction land.

Contact Unit:
Contact Unit: Economic and Trade Bureau of Huzhu County
Contact: Wei Baoshan
Tel: 0972--8322397