BEIJING and CHANGGE,
China, Dec.
13, 2010 /PRNewswire-FirstCall/ -- Zhongpin Inc.
("Zhongpin", Nasdaq: HOGS), a leading meat and food processing
company in the People's Republic of
China, today announced that it would build a new production,
research & development, test, and training complex in its home
city of Changge in Henan province
of China.
The new facility will add 100,000 metric tons of capacity for
prepared pork products, including Chinese-style, western-style,
half-cooked, and easy-to-cook pork products. Adjacent to the
production facility will be a new center for advanced research
& development, test, training, and other support functions.
Mr. Xianfu Zhu, Chairman and
Chief Executive Officer of Zhongpin Inc., said, "This expansion
will add capacity for our higher-margin downstream products and
will serve our central China
market and adjacent markets. It will substantially enhance our
R&D and further support our expanding market share in the
growth regions of China. This new
facility proves that we remain committed to doing everything
possible -- using the most advanced technologies and processes --
to continue delivering new product innovations that will be desired
by China's citizens, delivering
food at the highest standards of product quality and safety to
every customer, and delivering strong long-term returns to our
shareholders."
Zhongpin plans to invest $58.5
million on the construction, excluding the land use rights
that Zhongpin already owns. More than 80% of the production
equipment will be internationally sourced. Zhongpin consistently
selects the best and most advanced equipment, processes, and
integrated information systems for its plants. The company's
advanced cold-chain logistics system will support the expanding
capacity. The payback period for the project is expected to be
about 5.75 years.
Construction for the first phase of 50,000 metric tons for
prepared pork products is scheduled to start in the first quarter
2011 and be completed by the third quarter 2011, and the second
phase, also with an annual capacity of 50,000 metric tons for
prepared pork products, is expected to be completed in the fourth
quarter 2012. The R&D, test, and training center is also
expected to open by the fourth quarter 2012.
About Zhongpin
Zhongpin Inc. is a meat and food processing company that
specializes in pork and pork products, vegetables, and fruits in
China. Its distribution network in
China covers 20 provinces plus
Beijing, Shanghai, Tianjin, and Chongqing and includes more than 3,285 retail
outlets. Zhongpin's export markets include the European Union,
Russia, Hong Kong, South
Africa, and Southeast Asia.
For more information about Zhongpin, please visit Zhongpin's
website at http://www.zpfood.com.
Safe harbor statement
Certain statements in this news release are forward-looking
statements made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Zhongpin has based its
forward-looking statements largely on its current expectations and
projections about future events and trends that it believes may
affect its business strategy, results of operations, financial
condition, and financing needs.
These projections involve risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements, which may include but are not limited
to such factors as downturns in the Chinese economy, unanticipated
changes in product demand, interruptions in the supply of live pigs
and or raw pork, poor performance of the retail distribution
network, delivery delays, freezer facility malfunctions, Zhongpin's
ability to build and commence new production facilities according
to intended timelines, the ability to prepare Zhongpin for growth,
the ability to predict Zhongpin's future financial performance and
financing ability, changes in regulations, and other information
detailed in Zhongpin's filings with the United States Securities
and Exchange Commission. These filings are available from
www.sec.gov or from Zhongpin's website at www.zpfood.com.
You are urged to consider these factors carefully in evaluating
Zhongpin's forward-looking statements and are cautioned not to
place undue reliance on those forward-looking statements, which are
qualified in their entirety by this cautionary statement. All
information provided in this news release is as of the date of this
release. Zhongpin does not undertake any obligation to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required by law.
For more information, please
contact:
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Zhongpin Inc.
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Mr. Sterling Song (English and
Chinese)
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Investor Relations
Manager
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Telephone +86 10 8286 1788
extension 101 in Beijing
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ir@zhongpin.com
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Mr. Warren (Feng) Wang
(English and Chinese)
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Chief Financial
Officer
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Telephone +86 10 8286 1788
extension 104 in Beijing
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warren.wang@zhongpin.com
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Christensen
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Mr. Han Fang (English and
Chinese)
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Telephone +86 10 5971 2001 in
Beijing
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fhan@christensenir.com
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Mr. Tom Myers
(English)
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Mobile +86 139 1141 3520 in
Beijing
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tmyers@christensenir.com
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Ms. Kathy Li (English and
Chinese)
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Telephone +1 212 618
1978
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kli@christensenir.com
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SOURCE Zhongpin Inc.