omniture

Zhongpin Plans to Construct a New Chilled & Frozen Pork Facility in Western Henan Province

2007-05-08 17:45 1420

CHANGGE CITY, China, May 8 /Xinhua-PRNewswire/ -- Zhongpin Inc. (OTC Bulletin Board: ZHNP), a leading meat and food processing company in the People's Republic of China ("PRC"), announced today that it plans to construct a new facility for processing chilled and frozen pork in the western region of Henan Province.

Located in Luoyang City, the second largest city in Henan province, the new $14.5 million facility is expected to process up to 70,000 metric tons of chilled and frozen pork on an annual basis. Approximately 60% of production capacity will be dedicated to the production of chilled pork and 40% to the production of frozen pork. Zhongpin anticipates that the construction will be completed and expects to put into production in early 2008.

Zhongpin's current total production capacity for chilled and frozen pork is approximately 177,480 metric tons. The company has previously announced its plans to construct facilities in the southern and northern regions of Henan Province that are expected to add approximately 72,000 and 63,000 metric tons of total annual production capacity, respectively. These two facilities are scheduled to be brought online in the second and third quarters of 2007, and are anticipated to bring Zhongpin's total production capacity to 312,480 metric tons by year end. The new Luoyang City facility is expected to increase Zhongpin's capacity for chilled and frozen pork by over 20% in 2008 based on the planned capacity expansion in 2007.

"Zhongpin is experiencing an unprecedented level of growth, driven by strong demand for pork products in China," commented by Mr. Xianfu Zhu, CEO of Zhongpin, Inc. "Luoyang City is a hub for meat product distribution in western Henan Province due to its large population and high per capita gross domestic product. In addition, it borders on Shaanxi and Shanxi Province, one of the main sources of hogs in China with excellent breeds and relatively low feeding cost. Given these geographic advantages and the convenient access to transportation, we believe our new facility will easily cover the Xi'an and Taiyuan City markets."

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 20 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 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.

Source: Zhongpin Inc.
Related Stocks:
NASDAQ:HOGS
Keywords: Machinery
collection