Zhongpin Expands Into Premium Food Oil Business
August 25 2009 - 6:00AM
PR Newswire (US)
Will Build New Plant in Changge, Henan Province CHANGGE and
BEIJING, China, Aug. 25 /PRNewswire-Asia-FirstCall/ -- Zhongpin
Inc. ("Zhongpin", Nasdaq: HOGS), a leading meat and food processing
company in the People's Republic of China, today announced that it
will enter the premium food oil business. This new business line
will further enhance the brand identity of Zhongpin, broaden its
product lines and core competencies, increase capacity utilization
and profitability, and reduce waste. "In addition to increasing our
brand identity, core competencies, product lines, and production
capabilities, this expansion has two other benefits," said Mr.
Xianfu Zhu, Chairman and CEO of Zhongpin. "First is the expected
increase in our return on investment, which is one of our primary
financial goals. And second is further effective utilization of the
raw materials we consume in our pork and pork processing
production, since premium food oils will be co-products from our
current processing. The new plant will benefit from all the same
modern process engineering and information technology advances we
have been applying to all of our facilities. We have only one
production standard -- the world's highest product quality and
safety in the pork industry." The premium food oils will be sold
through Zhongpin's existing sales channels to both wholesale and
retail customers. Wholesalers will include business customers, such
as well-known food companies as well as large high-end chain
restaurants. Individual consumers will be able to buy the new
premium food oils in Zhongpin's retail stores and in network stores
that carry the Zhongpin line of branded food products. The new
plant, to be located in the Zhongpin Food Industrial Park in
Changge, Henan province, will have an initial annual capacity of
20,000 metric tons for premium quality food oils. Construction is
planned to begin in September 2009. The plant, with
state-of-the-art manufacturing processes, is expected to be
operating in the second quarter 2010. The total investment in the
new project is approximately RMB 38 million or US$ 5.6 million.
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 the China covers 20 provinces
plus Beijing, Shanghai, Tianjin, and Chongqing and includes more
than 3,000 retail outlets. Zhongpin's export markets include the
European Union 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, any
effect from the A(H1N1) virus on Zhongpin's market or sales,
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. 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: Zhongpin Inc. Mr. Sterling Song
(English and Chinese) Investor Relations Manager Tel:
+86-10-8286-1788 x101 in Beijing Email: Mr. Warren (Feng) Wang
(English and Chinese) Chief Financial Officer Tel: +86-10-8286-1788
x104 in Beijing Email: Christensen Mr. Yuanyuan Chen (English and
Chinese) Tel: +86-10-5971-2001 in Beijing Cell: +86-139-2337-7882
in Beijing Email: Mr. Tom Myers (English) Cell: +86-139-1141-3520
in Beijing Email: Ms. Kathy Li (English and Chinese) Tel:
+1-212-618-1978 in New York and Scottsdale Email: DATASOURCE:
Zhongpin Inc. CONTACT: Mr. Sterling Song (English and Chinese),
Investor Relations Manager, +86-10-8286-1788 x101 in Beijing, ; or
Mr. Warren (Feng) Wang (English and Chinese), Chief Financial
Officer, +86-10-8286-1788 x104 in Beijing, ; or at Christensen, Mr.
Yuanyuan Chen (English and Chinese), +86-10-5971-2001 in Beijing,
+86-139-2337-7882 in Beijing, ; or Mr. Tom Myers (English),
+86-139-1141-3520 in Beijing; ; or Ms. Kathy Li (English and
Chinese), +1-212-618-1978 in New York and Scottsdale, Web site:
http://www.zpfood.com/
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