CHANGGE CITY, Henan, China, June 2 /Xinhua-PRNewswire-FirstCall/ -- Zhongpin Inc. (Nasdaq: HOGS) (“Zhongpin”), a leading meat and food processing company in the People’s Republic of China (“PRC”), today provided an update on the construction of its new prepared meat facility at Zhongpin’s Industrial Park located in Changge City, Henan Province and its frozen and chilled pork processing facilities in western and eastern Henan Province.
On March 12, 2008, Zhongpin began construction of its new processed meat facility with an annual production capability of 28,800 metric tons, bringing Zhongpin’s total capacity of prepared meats to 54,000 metric tons. Construction is moving forward on schedule and the company is currently evaluating and purchasing equipment for the facility. Zhongpin plans to equip its prepared meat facility with over 40 pieces of the most advanced, automated, state-of-the-art equipment, including sausage filling and cooking equipment, from top-tier equipment manufacturers in Germany. Zhongpin has twice sent members of its research and development team to Europe to evaluate equipment and the latest technology. Other supporting equipment will be provided by Chinese manufacturers. By combining imported and domestic equipment, Zhongpin can lower capital investment while guaranteeing that the quality of its products will meet international standards. The Company is confident that the prepared meat facility will begin production in September 2008 as planned.
Construction of Zhongpin’s new factory in Luoyang City, Henan province is also proceeding on schedule and the company expects to begin trial production at the end of June. Zhongpin is in the process of signing supply contracts with hog producers in the surrounding areas and has signed letters of intent with several major farms and sales agents for the purchase of more than 2,000 hogs per day. Zhongpin’s marketing and sales divisions have completed market research, identified target markets and signed letters of intent with Zhongpin’s major customers. In addition, staff for the Luoyang facility is being trained in the most effective processes and procedures at the factory at Zhongpin’s headquarters in Changge as well as its facilities in Zhumadian and Anyang. Once completed, the new processing facility will add 70,000 metric tons of annual capacity of chilled and frozen pork.
Construction at Zhongpin’s eastern Henan Province facility in Shangqiu City continues and the facility is expected to begin operations in the fourth quarter of 2008. Once the new western and eastern facilities are completed, Zhongpin will have total capacity of 471,560 metric tons of chilled and frozen pork, excluding outsourcing from OEMs.
“Our new factories in eastern and western Henan Province will allow us to further expand production of chilled and frozen pork in order to meet demand for high-quality pork in China. At the same time, our prepared meat facility will allow us to expand our product lines to target mid- and high-end consumers by appealing to their evolving tastes and nutrition requirements with a variety of prepared pork products,” said Mr. Xianfu Zhu, CEO of Zhongpin. “We are confident that we will complete these facilities on schedule, which will further our efforts to build a leading brand of pork products in China.”
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: +86-10-82861788
