Zhongpin expands capacity in north-east China

By Dominique Patton

- Last updated on GMT

Chinese meat processor Zhongpin has signed an agreement to lease a
production facility in Heilongjiang province, significantly
boosting its production capacity and expanding its presence in the

The facility, leased from Heilongjiang Gongzhun Meat Food, has a capacity of 80 metric tons per day, including 50 tons of chilled pork and 30 tons of frozen pork. The extra production will boost the firm's current capacity of some 80,000 tons of chilled meat and 40,000 tons of other meat products each year. Zhongpin, which also produces frozen fruit and vegetables, claims to be the eighth biggest meat processor in China but it is increasingly looking abroad, with a listing on Nasdaq last year. About 12 per cent of its chilled meat and meat products are currently exported to eastern Europe, Russia, Hong Kong, Japan and South Korea. The company reported sales of CNY 1.2 billion in 2005 and expects to increase its revenue to CNY 10.6 billion by 2010. The lease agreement covers the assets in the facility, such as equipment, offices and sales outlets. It will add a new distribution network throughout Heilongjiang province and other parts of northeast China, as well as export markets. It already reaches more than 20 provinces and includes over 2,290 retail outlets. "This production facility also enables us to increase our presence in north-eastern China with the advantage of immediate access to fresh products that will help us build a national brand for pork and meat products,"​ commented Baoke Ben, executive vice president, in a release to the stock exchange.

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