January 5, 2007

China's Yurun Group sets its sights on north-eastern China market

Shuangcheng Animal Products Processing Plant, the first project after Nanjing's Yurun Group bought over Harbin Popular Meat-Packing Group has come online.

Yurun bought Harbin Popular in November 2003 in a RMB 260 million deal.

The Shuangcheng project, costing RMB 1.1 billion, is expected to bring in revenue of RMB 3.4 billion by year-end, with profits expected at RMB 180 million. The plant has an annual hog slaughter capacity of 1.5 million and meat processing capability of 50,000 tonnes a year.  

The merger has brought about significant benefits to the Harbin Popular company. Meat processing capability in 2004 was 55.7 million tonnes and that in 2005 was 62.6 million tonnes Revenue almost doubled from 2004's RMB 187 million, to RMB 361 million in 2005. Profits doubled from 2004's RMB 15.5 million to 2005's RMB 34.1 million.

The company would not only expand on its production base in Shuangcheng but would continue to open up further markets in the north-east, a Yurun spokesman said, adding that currently the group is active in 5 locations in the region. 

Yurun plans to have more than 10 production and manufacturing plants in China's north-eastern region in the near future.

China Yurun Group is the top processor in low-temperature meat products.

Harbin Popular was one of the top ten meat companies in China from the 1950s to 1970s. In 2004, the state-owned company was privatized and incorporated into Nanjing Yurun Group. It has now developed into a major meats company involved in meat production, processing and logistics.

( 1 RMB = US$ 0.128)