China's Zhongpin Inc receives government subsidies

Zhongpin Inc, a leading Chinese meat and food processing company, Thursday (Dec 3) reported that it has received two payments amounting to RMB21.4 million (US$3.1 million) in cash subsidies from the Chinese government.

Zhongpin received a subsidy cash payment of RMB20 million from the Chinese government to support the development of its new plant in Tianjin. The new plant, which is under construction, will have a total annual production capacity of 100,000 tonnes of chilled and frozen pork products and it is expected to be completed in the first quarter of 2010.

In addition, Zhongpin received a subsidy cash payment of RMB1.4 million to support its new premium food oil plant currently under construction in Changge in the Henan province.

China's policies in 2009 have encouraged meat processing companies to further modernise and improve their products and processes. As Zhongpin previously announced, China's National Development and Reform Commission approved the subsidies for Zhongpin's three new pork processing projects in Tianjin and Changge.

Meanwhile, Zhu Xianfu, chairman and CEO of Zhongpin, said the company is very grateful to receive the subsidies from the Chinese government which will help to support its expansion, and hence provide quality food for China's citizens.

US$1=RMB6.827 (Dec 4)