Kish Free Zone Organization

Cartilage Proteases Production


Cartilage Proteases Production

A- Project Introduction

1. Project title: Cartilage Proteases production

2. Sector: Industry Sub-sector: Medical

3. Products / Services: Cartilage Proteases

4. Location:

Free zone  Special Economic Zone  Industrial Park  Main location

5. Project specifications
This project is for construction of a complex for producing Cartilage Proteases (bio glass). Bio glasses are widely used in bone texture surgeries. Bio glass is a polymeric substance for using in cartilage texture. They are named as poly acid glycolic (PGA), poly acid lactic (PLA) and their co polymers in addition to natural absorbable polymers such as collagens, gelatins, fibrins and alginates in form of spongy mesh, fiber and gel. A property with an area of 2500sqm is considered for this project that 1200sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 69 people and its annual capacity is more than 1300 units.
6. Annual Capacity: 1300 units per year
7. Land requirement: 2,500Sq.m
8. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people

9. permissions:
The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from
other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject
10. Construction and operation period:

The construction project will be done in 1 years and the operation phase is 15 years
11. Target market:

Arthrosis is one of the most prevalent reasons for a need to replace joints. In this disease, the cartilage in joint is gradually worn out. The pain resulting from joints arthrosis can be mostly tolerated by changing life style and taking medicines but sometimes it is so severe that the patient is unable to use his/her joints and in that case there is no way out but surgery and replacing joints. Sometimes occurrence of some accidents can be a reason for replacing joints. The elderly suffering from osteoporosis for example, may have bone fracture or joint dislocation upon a light hit and joints replacement comes following that. 20% of those affected by knee arthrosis are under their 50 years old but the point is that this kind of disease usually commences as over 50. About %6.16 of Iranians over 15 years old are suffering from different kinds of arthrosis including knee, fingers, hip and neck. If we consider the population of those over 15 years old in the country about 56 million, at least, 9 million people are suffering from arthrosis and a high number of them are in need of using synthetic cartilages. This product enjoys a high added value creating over %50 added value while cost price of the product
is less than half of its market price.
12. Access to Infrastructures:

Distance to project locationInfrastructure requiredtem
At the siteWater1
At the siteElectricity2
At the siteTelecommunication4
At the siteThe main road5
380kmRailway station8

B- Financial structure:
13. Cost and benefits

USD $ 1.4 millionCapital expenditure
USD $ 3.4 millionOperating Revenue
USD $ 2.1 millionOperating cost

14. Financial index

USD $ 1.3 millionNet benefit
1.7Benefit–cost ratio (B/C()
1.8 YearsPayback Period

15. Economic index

USD $ 5.6 millionNet present value (NPV)
69 %Internal rate of return (IRR)
24 %Break-even point

16. Methods of participation:
For this project, investor may proceed with individual investment by purchasing properties and payment of costs for obtaining necessary permits or undergo partnership with Kish Free Zone Organization for carrying out project through various partnership models. In case of intending to have partnership, costs of property and plan permits will be considered as contribution of the organization
C- Incentives, features and advantages of the project:

17. Incentives:

• Simplified formalities for re-export and goods transit
• Tax exemption and the benefits of accessing to foreign
• 20-year tax exemption for any type of financial business
• Preferential rates of land to build hotels and recreational- tourism places.
• Customs duties exemption to imports raw materials and industrial machinery of the production units
• No restrictions on entry and existence of the exchange currency on any amount and the possibility
to transfer money to foreign companies.
18. Support and legal advantages:

• Foreign nationals’ entrance with no visa
• Legally protecting and ensuring foreign investors.
• Registering company with 100 percent foreign ownership
• Have the right of entry and exit the capital and the profits
19. Special and unique benefits of the region:

• Having access to the international free waterways
• Having an energy source (gas) independent of the mainland
• The ability to transit goods to neighboring CIS countries and Iran
• High level of security and social peace and low levels of social disorder
• A harbor with the ability of berthing vessels with 12,000 tones capacity.
• Exporting products to foreign countries without paying customs and harbor duties
• International Securities Exchange activity and oil and petrochemical products stock
• Having good optical fiber network and an independent private mobile network privileges
• Having an independent airline and shipping lines with the possibility of transporting vehicles