CHANGGE CITY, Henan, China, June 30 /Xinhua-PRNewswire/ -- Zhongpin Inc. (Nasdaq: HOGS) (“Zhongpin”), a leading meat and food processing company in the People’s Republic of China (“PRC”), today announced that it has completed the equipment installation phase at its new plant in Luoyang City, Henan Province and will start production immediately.
In April 2007, Zhongpin formed a new wholly-owned subsidiary, Luoyang Zhongpin Food Company Limited, for the purpose of constructing a production facility to be located in western Henan Province. Zhongpin began construction of the new facility in August 2007 and invested approximately $14.5 million in the project. The facility has the capacity to produce 70,000 metric tons of chilled and frozen pork annually. Approximately 60% of the capacity is dedicated to the production of chilled pork and the remaining 40% is dedicated to the production of frozen pork. The new factory increases Zhongpin’s total production capacity for chilled and frozen pork to 391,560 metric tons, excluding contributions by OEMs, an increase of 22% from its current capacity of 321,560 metric tons. Zhongpin expects the new factory to ramp up to over 70% utilization rate by the fourth quarter of 2008.
“We are happy to add a new facility in Henan Province and increase our production capacity. We believe there is great demand for pork products from consumers and wholesale clients in China. The additional capacity will expand our distribution network in western Henan Province as well as Shanxi and Shaanxi Provinces,” said Mr. Xianfu Zhu, CEO of Zhongpin Inc. “The strategic location of our new plant offers us several advantages. Henan Province is the second largest hog farming base in China and our new plant will have convenient access to hog supplies. In addition, Henan and nearby provinces account for one third of China’s population and we plan to focus our efforts on further developing this huge market for our products.”
About Zhongpin
Zhongpin is a meat and food processing company that specializes in pork and pork products, and fruits and vegetables, in the PRC. Its distribution network in the PRC spans more than 20 provinces and includes over 2,900 retail outlets. Zhongpin’s export markets include the European Union, Eastern Europe, Russia, Hong Kong, Japan and South Korea. For more information, contact CCG Elite directly or go to Zhongpin’s website at http://www.zpfood.com .
Safe Harbor Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements within the meaning of Federal securities laws. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of the company’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: unanticipated changes in product demand, interruptions in the supply of live pigs/raw pork, downturns in the Chinese economy, delivery delays, freezer facility malfunctions, poor performance of the retail distribution network, changes in applicable regulations, and other information detailed from time to time in the company’s filings and future filings with the United States Securities and Exchange Commission.
For more information, please contact:
Crocker Coulson, President
CCG Elite
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgelite.com
Yuanmei Ma, Chief Financial Officer
Zhongpin Inc.
Tel: +86-10-8286-1788
Email: zhongpin.ir@gmail.com
Web: http://www.zpfood.com
