December 14, 2010
Zhongpin to build production and R&D complex in Changge
Zhongpin Inc, China's leading meat and food processing company, announced Monday (Dec 13) that it would build a new production, research & development, test, and training complex in its home city of Changge in Henan province of China.
The new facility will add 100,000 tonnes of capacity for prepared pork products, including Chinese-style, western-style, half-cooked, and easy-to-cook pork products. Adjacent to the production facility will be a new centre for advanced research & development, test, training, and other support functions.
"This expansion will add capacity for our higher-margin downstream products and will serve our central China market and adjacent markets. It will substantially enhance our R&D and further support our expanding market share in the growth regions of China," said Chairman and CEO of Zhongpin Xianfu Zhu.
Zhongpin plans to invest US$58.5 million on the construction, excluding the land use rights that Zhongpin already owns. More than 80% of the production equipment will be internationally sourced. The company's advanced cold-chain logistics system will support the expanding capacity. The payback period for the project is expected to be about 5.75 years.
Construction for the first phase of 50,000 tonnes for prepared pork products is scheduled to start in the first quarter 2011 and be completed by the third quarter 2011, and the second phase, also with an annual capacity of 50,000 metric tons for prepared pork products, is expected to be completed in the fourth quarter 2012. The R&D, test, and training centre is also expected to open by the fourth quarter 2012.
Zhongpin Inc is a meat and food processing company that specialises in pork and pork products, vegetables, and fruits in China. Its distribution network in China covers 20 provinces plus Beijing, Shanghai, Tianjin, and Chongqing and includes more than 3,285 retail outlets. Zhongpin's export markets include the EU, Russia, Hong Kong, South Africa, and Southeast Asia.
