omniture

Zhongpin Signs Lease for New Production Facility in Northeast China

Zhongpin Inc.
2006-11-09 17:41 1865

CHANGGE CITY, Henan, China, Nov. 9 /Xinhua-PRNewswire/ -- Zhongpin Inc.

(OTC Bulletin Board: ZHNP) today announced that it has signed an agreement

with Heilongjiang Gongzhun Meat Food Co., Ltd. to lease a production facility

in Hailun City, Heilongjiang province. The newly-leased facility expands

Zhongpin’s access into the northeast China market, primarily in Heilongjiang

province, Jilin province and Liaoning province.

(Logo: http://www.prnasia.com/sa/200611091647.jpg )

The addition of the Heilongjiang facility increases Zhongpin’s

production capacity of chilled and frozen pork and enhances the Company’s

potential revenue. Total capacity at the facility is 80 metric tons/day,

which includes 50 metric tons/day for chilled pork and 30 metric tons/day for

frozen pork. The lease agreement covers the assets in the facility,

including live pig slaughtering, cutting and refrigeration facilities,

railway lines and water, electricity, sewage, barns, logistics, lodging,

offices and sales outlets and other slaughtering-related facilities,

equipment and manufacturing instruments. The distribution network for this

facility covers Heilongjiang province and other parts of northeast China, as

well as exports.

“The addition of the Heilongjiang production facility is an important

step in increasing our capacity as we continue to increase our market share

by meeting market demand for high-quality, fresh and nutritious meat

products. This production facility also enables us to increase our presence

in north-eastern China with the advantage of immediate access to fresh

products that will help us build a national brand for pork and meat

products,” commented Baoke Ben, Executive Vice President of Zhongpin Inc.

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, 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.

Source: Zhongpin Inc.
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