November 17, China National Seed Group Co., Ltd. signed investment projects confirmation agreement and the agreement for investment in establishing seed processing center with Kunming Agricultural Bureau, Livestock Department and Eco-industrial Park Administrative Committee of Shilin County respectively. According to these agreements, China National Seed Group Co., Ltd. will invest nearly 190 million yuan in the construction of domestic first-class seed processing center which will cover an area of 150 mu. The project will adopt the world’s leading seed production and processing equipments and will be officially put into operation in 2010. It is estimated that the processing center has the capacity of producing 20 million kilograms of maize seeds annually.

At the signing ceremony, Zhang Wei, the assistant president of Sinochem and general manager of China National Seed Group Co., Ltd. indicated that as the only central company occupied in seed production business, China National Seed Group Co., Ltd. is endeavoring to build its own core competency and thus promoting the upgrading of China’s seed industry. The implementation of the project will further address the fast-growing needs to seed processing in southwest region and help the company improve seed processing business in overall national arrangement. At the same time, the project will also contribute to the agricultural development of Kunming Province by helping promote local structural adjustment for crop production and income of local farmers.