Zhongpin Upgrades Processing Plant for $6 Million

CHINA - Zhongpin Inc. has announced it is to upgrade its pork processing plant at Changge in Henan province to boost capacity by 37 per cent. The company is to give up its lease on a plant in Hebei province.
calendar icon 28 August 2009
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Zhongpin Inc., a leading meat and food processing company in the People's Republic of China, has announced that it has upgraded its slaughtering and processing facility in Changge in Henan province, that produces chilled and frozen pork products.

Process engineering and information technology improvements have increased the plant's annual production capacity by 37 per cent, from 59,760 metric tons to 81,760 tonnes, at a cost of approximately US$6 million. This higher capacity will help support Zhongpin's expansion into new markets for its chilled and frozen pork products.

With the upgrade of the Changge plant, the company has ended the lease of a plant in Hengshui, Hebei province.

Going forward, this newly modernised plant in Changge and the new plant in Tianjin that is currently under construction will assist Zhongpin to better serve its important north China market including the affluent cities of Beijing, Tianjin, and Tangshan.

The new Tianjin plant, which is expected to begin pork production by mid-February 2010, also will have state-of-the-art processes to produce chilled and frozen pork products of the highest quality and safety.

Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin, said: "We are very pleased with our new upgraded slaughtering and processing facilities, which were completed on schedule. As a significant phase in our capacity expansion plan, this partial rationalization of our production network is another important milestone in our development and helps us increase production and distribution efficiency. The newly modernized Changge plant and the coming new Tianjin plant will benefit from the same modern process engineering and information technology advances we have been applying to all our facilities. We have only one production standard - to make the highest quality pork products in the world.

"Zhongpin's market in north China includes consumers, distributors, restaurants, and organizations that require outstanding quality, safety, taste and nutritional value from its products, plus on-time delivery – just as all of our customers do. Zhongpin is well known for providing the highest product quality and safety at competitive prices.

"We will serve the market surrounding the Bohai Bay from our Changge and Tianjin plants as well as other neighbouring plants by using our advanced cold-chain distribution system. We are confident in our market expansion in the near future."
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