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Zhongpin Starts Trial Production at New Pork Plants

19 December 2011, at 11:05am

CHINA - Zhongpin has announced that trial production at its two newest chilled and frozen pork products plants, in Jiangsu and Jilin provinces, began on 16 December 2011.

Located in Taizhou, Jiangsu province, Zhongpin, a leading meat and food processing company in the People's Republic of China, began trial production for phase one of its new production plant for chilled and frozen pork.

The annual production capacity for the Jiangsu phase one plant will be about 80,000 metric tons for chilled and easy-to-cook pork products and 20,000 metric tons for frozen pork.

Zhongpin is investing about $63.0 million to build the Jiangsu production facility, warehouse, and distribution center. Construction began in September 2010. Phase two, a production facility for prepared pork products with an annual capacity of about 30,000 metric tons, is expected to open in the third quarter of 2012.

Located in Changchun, Jilin province, Zhongpin also began trial production for phase one of a new plant for chilled and frozen pork. The annual production capacity for the Jilin phase one plant will be about 70,000 metric tons for chilled pork and 25,000 metric tons for frozen pork.

Zhongpin is investing about $61.5 million to build a slaughtering and processing plant, low temperature prepared pork plant, logistics center, and research and development center in Jilin. Construction began in September 2010. Phase two in Jilin will include an annual production capacity for about 30,000 metric tons for prepared pork products, plus a research and development center, which are expected to open in the third quarter of 2012.

At the same time, the plant for chilled and frozen pork with a capacity of 30,000 metric tons, leased by Zhongpin in Gongzhuling, Jilin province, will cease operations. This facility has been leased by Zhongpin on a three year contract since December 2008.

As of 30 September, 2011, Zhongpin had an annual capacity of 563,760 metric tons for chilled and frozen pork, 126,000 tons for prepared pork products, 20,000 tons for pork oil, and 30,000 tons for vegetables and fruits, for a total annual capacity of 739,760 metric tons.

With the addition of the two phase one plants, Zhongpin will have an annual capacity of 728,760 metric tons for chilled and frozen pork, 126,000 tons for prepared pork products, 20,000 tons for pork oil, and 30,000 tons for vegetables and fruits, for a total annual capacity of 904,760 metric tons.

Mr Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin, said: "With our two newest plants for chilled and frozen pork opening, we will have increased our annual capacity for chilled and frozen pork by 29.3 per cent and our total annual production capacity for all products by 26.4 per cent."

"As with our other recent expansions, we already sell into those markets from our existing facilities, so we have good market acceptance and growth potential in both the Jilin province in northeast China and in the Jiangsu province in southeast China near Shanghai."

"Given our good market acceptance, plus our cold-chain distribution system that already serves those markets, we expect a rapid increase in volume for both plants, because their openings are timed to capture a good share of the peak pork season during the Chinese Lunar New Year and Spring Festival that runs from the new moon on 23 January through the full moon on 8 February, 2012."