Zhongpin to Invest $58.5m in Pork Plant in China

Zhongpin is planning to build a new pork plant and cold-chain logistics centre in Changge in the Henan province of China.

The facility, which includes a centre for advanced R&D, test, training and other support functions will add 100,000t of capacity for prepared pork products, including Chinese-style, western-style, half-cooked and easy-to-cook products.

While 80% of the production equipment will be internationally sourced, Zhongpin plans to invest $58.5m in the construction of the facility, with the payback period for the project expected to be about 5.75 years.

Construction for the first phase of the development is scheduled to start in the first quarter 2011 and is scheduled for completion in the third quarter of 2011.

The second phase, with an annual capacity of 50,000t, is expected to be completed in the fourth quarter of 2012.

Zhongpin chairman and CEO Xianfu Zhu said the expansion will add capacity for the company’s higher-margin downstream products, and will serve the 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,” Xianfu said.