JSP is ready to increase CBD oil production
Firm eyes 30,000 kg in the second half of the year
A machine extracts CBD oil in a JSP factory.
JSP Pharmaceutical Manufacturing (Thailand) plans to increase production of cannabidiol (CBD) oil, extracted from cannabis and hemp, to 30,000 kilograms for the second half, up to 300 kg, to meet the demand for CBD blends in products ranging from food to cosmetics.
According to JSP, capacity needs to be increased as new CBD oil purchase orders have been issued by some 200 companies.
CBD, known for its potential to treat many diseases, can be used for medical purposes and used in the production of nutritional supplements, said Sittichai Daengprasert, executive director of JSP.
“We are preparing to spend 160 million baht to buy oil extraction machinery, which will be installed in the next two months,” he said.
The company also plans to spend an additional 50 million baht to market its CBD-based products in Thailand and abroad.
CBD oil made for JSP’s own brand products accounts for 30% of total production, with 70% produced as a manufacturer of original equipment to serve European brands.
JSP believes that additional production capacity, along with its sales across many channels, will lead to a leap in revenue growth.
The company also plans to open a traditional Thai medicine clinic this year for people seeking alternative medical treatments, based on marijuana, hemp and herbs.
JSP operates two drug manufacturing plants in Lamphun and Bangkok.
The company exports the drugs to countries in Asia and Europe.
JSP is conducting research on new herbal medicines and various nutritional supplement products.
As the CBD industry grows, JSP decided to raise funds through an initial public offering (IPO) in the Alternative Investment Market to expand its business, both domestically and abroad.
Funding for IPO sales will support the development of new healthcare products under the JSP brands, the firm said.
The company aims to launch between 4 and 5 new products each year.
