CHANGGE CITY, Henan Province, China, June 28 /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"), announced today that it has begun production of chilled and frozen pork at its new factory in the southern part of Henan Province.
The new processing facility is located in Zhumadian City, one of the largest cities in southern Henan Province, and has the capacity to produce 72,000 metric tons of chilled and frozen pork annually. Approximately 60% of capacity is dedicated to the production of chilled pork and 40% is dedicated to the production of frozen pork. The new factory increases Zhongpin's total production capacity for chilled and frozen pork to 249,480 metric tons, or 40%, from its current capacity of 177,480 metric tons, and cost approximately $14 million to construct. Zhongpin expects the new factory to ramp up to maximum capacity in the fourth quarter of 2007.
"Pork is an important part of the Chinese diet and demand for pork processed in modern, hygienic processing facilities continues to drive our growth," said by Mr. Xianfu Zhu, CEO of Zhongpin, Inc. "The location of our new plant offers us several advantages beyond expanding our production capacity. Zhumadian City is in close proximity to a rich hog supply with low feeding costs. In addition, nearby access to key railways and highways will enable us to rapidly deliver our pork products to our customers and allow us to expand our presence into neighboring areas including the Hubei Province, Hunan Province and Pearl River Delta area."
About Zhongpin
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 twenty provinces and includes over 2,800 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 visit Zhongpin's website at http://www.zpfood.com .
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.
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
