CHANGGE CITY, China, July 3 /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 plans to construct a new facility for processing chilled and frozen pork in the eastern region of Henan Province.
Zhongpin plans to invest $15 million to build its sixth production facility in Henan Province. The new facility will be located in Shangqiu, the main farm belt in eastern Henan, and is expected to process up to 80,000 metric tons of chilled and frozen pork annually. Approximately 75% of the facility's production capacity will be dedicated to the production of chilled pork and 25% to the production of frozen pork. Construction is scheduled to begin in August 2007 with the facility targeted to begin operations at the end of the second quarter in 2008, after the Luoyang facility in western Henan begins production. The facility will expand Zhongpin's distribution in eastern Henan Province and the central and eastern parts of China.
"With this new facility, along with our five other facilities in Henan, we will have firmly established ourselves in Henan Province and central China by the middle of 2008. Henan Province has the second largest supply of hogs in China next to Sichuan Province, ensuring an ample source of hogs," said by Mr. Xianfu Zhu, CEO of Zhongpin, Inc. "The new capacity we are bringing on line over the next year will enable us to significantly and rapidly expand our market share as we build a premium pork brand with the reputation for high quality and nutrition."
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 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, or
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
