The Wanglaoji Health Industrial Park costing 2.2 billion yuan ($325.31 million) will settle in Xiaoyi county, Shanxi province, according to an agreement signed on Sept 23.

The project, jointly constructed by Wanglaoji Investment and Golden Rock Group, is located in the Xiaoyi High-Tech Industrial Zone, covering an area of 20 hectares. Another area of 133 hectares will be used for constructing demonstration bases for traditional Chinese medicine (TCM), fruit and culture industries.

The project is expected to be totally finished by 2019. Six production lines in the first phase are estimated to be put into use at the Spring Festival of 2017.

Once completed, the park will mainly produce beverages made from TCM and farm produce, such as Chinese yam, walnut and red dates, as well as other products of Wanglaoji. The annual output of beverages will reach 500,000 tons, generating some four billion yuan in sales.

"The park will foster economic and industrial growth in Xiaoyi while promoting the brands of Wanglaoji and TCM based on local herbal medicinal resources," said Zhang Yongtao, manager of Wanglaoji Investment.

Xiaoyi county in Shanxi is a production base of various herbal medicines and farm produce, which has great potential for boosting the TCM industry. The park is expected to greatly enhance the added value of TCM and agricultural byproducts in Xiaoyi and nearby regions.

Wanglaoji is a brand with a history dating back 188 years and is nationally famous for its herbal tea and Chinese medicines.