July 27, 2011
China's largest meat food processor Shineway Group will join forces with Japanese companies to tap into live hog breeding, said Chairman Wan Long.
Each hog slaughter plant will be equipped with a 200,000-tonne feeding processing factory to ensure upstream sources and a live hog breeding base where 500,000 hogs will be available every year.
Wan Long said Shineway Group will try to accomplish restructuring by end-2012. The company is about to bury 3,768 tonnes of frozen meat and meat products involved in the clenbuterol scandal in an unharming way, which will bring the company RMB62 million in losses.
Shineway Group has abolished its previous sample inspection system and will spend RMB300 million on new clenbuterol inspection for each hog. The expense increase will not be transferred to consumers, said Wan Long.
It forecasts RMB58.9 billion in operating revenue in 2011 fiscal year, down from former expectation of RMB60 billion in the wake of clenbuterol scandal.