CHANGGE CITY, HENAN PROVINCE, China, April 5 /Xinhua-PRNewswire/ --
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 has increased its capacity for prepared meat products by an additional
10,800 metric tons, or 75%, bringing total capacity to 25,200 metric tons
annually.
The additional capacity of prepared meat products has been added to the
Company's main production factory, Zhongpin Industry Park, which is located in
Changge City, Henan Province. The Company's prepared meats include a variety
of popular sausages, such as Taiwanese grilled sausage, hotpot sausage and
breakfast sausage. The $3.0 million expansion adds production capacity of 30
metric tons per 8-hour working day, or approximately 10,800 metric tons on an
annual basis, and is equipped with automated start-of-art technology for
efficient processing. The Company began production of prepared meats on the
new lines at the end of March 2007.
"Our prepared meat products have been well accepted by consumers and
wholesale clients in the Central and Northeastern China markets," commented Mr. Xianfu Zhu, Chairman of Board and CEO of Zhongpin. "We have implemented a
creative marketing campaign and deepened our distribution channels, both of
which have resulted in increased market demand for our prepared meat products.
The combination of new products and additional capacity should enhance margins
from our prepared meat products lines."
About Zhongpin Inc.
Zhongpin is a meat and food processing company that specializes in pork
and pork products, and vegetables and fruits, in the PRC. Its distribution
network in the PRC spans more than 20 provinces and includes over 2,290 retail
outlets. Zhongpin's export markets include the European Union, Eastern Europe, Russia, Hong Kong, Japan and South Korea. For more information,
visit the company's website at http://www.zpfood.com or contact CCG Elite
directly.
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995: Forward-looking statements are statements that are not historical
facts. Such forward-looking statements are based upon the current beliefs and
expectations of Zhongpin'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.
Contact:
Crocker Coulson, President Yuanmei Ma, Chief Financial Officer
Leslie Richardson, Financial Writer Zhongpin Inc.
CCG Elite 86-010-82861788
646-213-1915
crocker.coulson@ccgir.com