March 13, 2008

 

China's Zhongpin starts construction of meat facility

 

 

Zhongpin Inc., China's leading meat and food processing company, announced that it has begun construction of its meat facility at Zhongpin's Industrial Park located in Changge City, Henan Province.

 

The new facility will add 28,800 tonnes to the annual capacity of 25,200 tonnes, bringing total capacity of prepared meats to 54,000 tonnes, gaining a 114 percent increase.

 

The facility is expected to cost US$13.2 million and will be equipped with the most advanced equipment from top-tier equipment manufacturers in Germany, the US and Japan.

 

It is designed to process value-added prepared meat products, such as a variety of popular sausages, meatballs and hams that appeal to the evolving tastes of Chinese middle-class consumers.

 

The facility expands Zhongpin's product lines by optimizing product mix and increasing the percentage of Zhongpin's higher-margin products, expected to begin production in September 2008.

 

Zhongpin is ahead of schedule in the construction of its western Henan Province facility (Luoyang) which is now expected to begin operations by the end of second quarter of 2008.

 

The company's eastern Henan Province facility (Shangqiu) also is expected to begin operations in the third quarter of 2008.

 

The new western and eastern facilities will add 70,000 tonnes and 80,000 tonnes annual capacity, respectively, to the company's chilled and frozen pork.

 

Once these facilities are completed, Zhongpin will have total capacity of 509,000 tonnes of chilled and frozen pork.

  

Zhongpin is a meat and food processing company that specializes in pork and pork products, and fruits and vegetables, in the PRC. Its distribution network in the PRC spans more than 20 provinces and includes over 2,900 retail outlets.

 

Zhongpin's export markets include the EU, Eastern Europe, Russia, Hong Kong, Japan and South Korea.