Zhongpin, Inc., a meat and food processing company that specializes in pork and pork products in the People’s Republic of China, announced that it has started trial production at its new prepared pork products plant in Tianjin. The plant cost about $22 million and will produce about 36,000 metric tons annually. Zhongpin will produce sausages, hotdogs and other low-temperature meat products at the new prepared pork facility. Zhongpin reports that this is phase 2 of its industrial park in Tianjin. Phase 1 is the chilled and frozen pork plant that has produced about 100,000 metric tons yearly since it opened in January of 2010.
“We are very pleased with the good market acceptance and growth we have earned so far in greater Tianjin and the North China area. In addition to our chilled and frozen pork, we also sell our prepared pork products in Tianjin that we create in other locations, so we already have a good market presence and foundation there for prepared pork products. For that reason, we believe with confidence that our new facility will yield good market share increases for our prepared pork products in greater Tianjin. We are quite confident that the new facilities in Tianjin will satisfy the traditional strong market demand during the Chinese New Year in early 2012,” stated Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin Inc in a press release on Friday.
Zhongpin believes the outlook for China’s pork processing industry remains positive. For the year 2011, the company said it expects sales revenues to be in the range of $1.33 billion to $1.37 billion. However, despite Friday’s news, the stock dropped down to a 52 week low.
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