May 10, 2007

 

China's Zhongpin doubles production with 3 meat plants in Henan province

 

 

Beijing-based Zhongpin Inc said it would build a US$ 14.5 million meat processing facility in Henan province.

 

With the new facility coming online next year, Zhongpin would have doubled its meat processing capacity by early 2008 from current levels.

 

Located in Luoyang City, the second largest city in Henan province, the facility is expected to process up to 70,000 tonnes of chilled and frozen pork yearly.

 

Approximately 60 percent of production capacity would be dedicated to the production of chilled pork and 40 percent to the production of frozen pork. 

 

The company currently has about a 180,000-tonne per year production capacity for chilled and frozen pork.

 

It is expected to add a total of 135,000 tonnes capacity by year end when two of its plants under construction, also in Henan province, comes online by the third quarter of the year. This would bring the company's capacity to almost 310,000 tonnes.

 

Zhongpin is experiencing an unprecedented level of growth, driven by strong demand for pork products in China, said Xianfu Zhu, the company's CEO.

 

Luoyang City is a hub for meat product distribution in western Henan Province due to its large population and high per capita gross domestic product, Zhu said. Its proximity to Shaanxi and Shanxi Province, two hog production regions, also makes it attractive as a location for pork processing, he added.

 

The new facility would easily cover the Xi'an and Taiyuan City markets, he said. 

 

Zhongpin is a meat and food processing company that specializes in pork and pork products and vegetables and fruits. Its distribution network in China spans more than 20 provinces and includes over 2,800 retail outlets.

 

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

 

The company is slated to hold a conference call to announce its first quarter results May 11.