Tibet's first modern Tibetan medicine production base is expected to go into operation next July, according to Lobsang Dorje, deputy director of the Tibet Autonomous Regional Tibetan Medicine Factory.

The base is situated in Lhasa's economic and technological development zone and covers an area of 66,700 sq m.

Photo taken on September 3, 2008, shows workers checking Tibetan medicines, photo from CTIC.

With a total investment of 96.36 million yuan RMB (14.1 million U.S. dollars), the base will have production lines for making liquid medicines, tablets, capsules and pills, as well as a Tibetan medicine research and development center.

The factory had a turnover of 120 million yuan RMB (17.56 million dollars) in 2008. Yet with the operation of the base, the figure is projected at 250 million yuan RMB (36.6 million dollars) per year.

Lobsang Dorje said, "With two pill production lines, my factory turns out 400 types of medicines, and yet we are still unable to meet the market demand of Tibet and other parts of China."

Two thirds of the medicines from the factory supply the regional market, while the rest is sold to other parts of China.

The factory has set up distribution channels in China's 30 province-level areas and has been selling its medicines to Hong Kong, Macao and Southeastern Asian countries.

He added that pills produced by the factory have been well received by people in Tibet, while consumers in other parts of China prefer liquid medicines, capsules, and tablets. The new base will substantially increase its production capacity to meet the market demand.