CHANGGE, Henan, China, Dec. 19 /Xinhua-PRNewswire-FirstCall/ -- Zhongpin Inc. (OTC Bulletin Board: ZHNP) ("Zhongpin"), a leading meat and food processing company in the People’s Republic of China ("PRC"), today announced that it plans to increase by September 2008 its annual production capacity for prepared meat products by an additional 28,800 metric tons, or 114% over its current capacity of 25,200 metric tons, bringing its total capacity to 54,000 metric tons.
Zhongpin plans to add the additional capacity of prepared meat products to the Company’s main production facility, Zhongpin Industrial Park, which is located in Changge City, Henan Province. The $13.2 million expansion will add production capacity of 80 metric tons per working day, or approximately 28,800 metric tons on an annual basis, and will be equipped with automated state-of-the-art technology for efficient processing. The Company plans to begin construction in the first quarter of 2008 and to begin production of prepared meats on the new lines by September 2008. Zhongpin’s prepared meat products include a variety of popular sausages, meatballs and hams.
"Our prepared meat products have been widely accepted by consumers and wholesale clients in China. We intend to optimize our product mix and improve our gross margin by expanding our line of prepared meat products," commented Mr. Xianfu Zhu, Chairman of the Board, President and Chief Executive Officer of Zhongpin. "We also plan to implement a creative marketing campaign and deepen our distribution channels to increase market penetration. We believe the combination of new products and additional capacity should enhance margins for our prepared meat product lines in the future."
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
Leslie Richardson, Financial Writer
CCG Elite
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Yuanmei Ma, Chief Financial Officer
Zhongpin Inc.
Tel: +86-10-8286-1788
