Zhongpin Signs Lease for New Production Facility in Northeast China
The addition of the Heilongjiang facility increases Zhongpin's production capacity of chilled and frozen pork and enhances the Company's potential revenue.
13/11/06 Zhongpin Inc. announced that it has signed an agreement with Heilongjiang Gongzhun Meat Food Co., Ltd. to lease a production facility in Hailun City, Heilongjiang province. The newly-leased facility expands Zhongpin's access into the northeast China market, primarily in Heilongjiang province, Jilin province and Liaoning province.
The addition of the Heilongjiang facility increases Zhongpin's production capacity of chilled and frozen pork and enhances the Company's potential revenue. Total capacity at the facility is 80 metric tons/day, which includes 50 metric tons/day for chilled pork and 30 metric tons/day for frozen pork. The lease agreement covers the assets in the facility, including live pig slaughtering, cutting and refrigeration facilities, railway lines and water, electricity, sewage, barns, logistics, lodging, offices and sales outlets and other slaughtering-related facilities, equipment and manufacturing instruments. The distribution network for this facility covers Heilongjiang province and other parts of northeast China, as well as exports.
''The addition of the Heilongjiang production facility is an important step in increasing our capacity as we continue to increase our market share by meeting market demand for high-quality, fresh and nutritious meat products. 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 of Zhongpin Inc.
