June 1, 2007

China's Shineway ups investment in Sichuan province

Market focus will once again be on China's Shineway Group. The company will invest an additional RMB400 million in Sichuan province as part of it's strategic plan to establish itself as the top meat processor in the country's western region, said Wanlong, Director of the Group.

The company's existing plant in Mianyang, Sichuan province, will be relocated and plans are already underway for the establishment of a new integrated meat processing base there.

From the supply of hogs to the marketing of finished meat products, all stages of productions and essential support services will be seamlessly linked. Annual sales contribution from this production base is expected to reach RMB3 billion.

Accounting for 30 percent of China's total hog volume, Sichuan is one of the biggest hog production regions in the country. Currently, about 80 percent of the pork used in producing Shineway's ham and sausages are supplied by farms in Sichuan.

Henan-based Shineway Group first made inroads into China's western region in 1997 after it acquired state-owned Mianyang Meat Processing Plant and assumed all its debts.

Nine years later, in January 2006, Shineway's Mianyang plant had made tremendous progress and it was awarded the HACCP certification. By then, the company was already one of the biggest meat processors in China's south-western region.