November 26, 2003

Singapore-Listed China Meat Producer Invests Reminbi410 Million ln New Pork Production Plant

Singapore-listed China-based meat supplier People's Food Holding Ltd said it will invest a total of 410 million yuan to expand its pork production capacity in two plants and set up a new pork production plant.

People's Food said it will invest 50 million yuan to expand LTMP (Low Temperature Meat Products) production capacity at its plant in Linyi, in the eastern Chinese province of Shandong.

When completed in the second quarter of 2004, the annual LTMP production capacity at the Linyi plant is expected to increase from about 20,000 tons to about 50,000 tons, the company said. The plant currently operates at about 80% capacity, it added.

People's Food said it will also invest 180 million yuan to expand its plant in Tongliao in China's Inner Mongolia Autonomous Region to increase its annual pig slaughtering capacity from 140,000 tons to 390,000 tons and to set up fresh pork production with capacity of 100,000 tons.

The expansion will increase Tongliao's annual HTMP (High Temperature Meat Products) production capacity from 43,000 tons to 73,000 tons and add annual LTMP production capacity of 30,000 tons, it added.

The Tongliao plant is presently operating at 78% capacity and its expansion is expected to be completed around August 2004, People's Food said.

The company will also establish a new 180 million yuan plant in Dezhou, in Shandong, to focus on pig slaughtering and fresh pork production.

The Dezhou plant is expected to start production around July 2004, with an annual pig slaughtering capacity of 250,000 tons and annual fresh pork production capacity of 100,000 tons, the company said.

People's Food internal resources said that they will finance all the expansion and the new plant.

( USD1 = 8.27 yuan)