2007'04.07.Sat
Zhongpin Inc. Increases Prepared Meat Products Capacity by 75%
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April 05, 2007
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CHANGGE CITY, HENAN PROVINCE, China, April 5 /Xinhua-PRNewswire/ -- Zhongpin Inc. (OTC Bulletin Board: ZHNP) ("Zhongpin"), a leading meat and food processing company in the People's Republic of China ("PRC"), today announced that it has increased its capacity for prepared meat products by an additional 10,800 metric tons, or 75%, bringing total capacity to 25,200 metric tons annually. The additional capacity of prepared meat products has been added to the Company's main production factory, Zhongpin Industry Park, which is located in Changge City, Henan Province. The Company's prepared meats include a variety of popular sausages, such as Taiwanese grilled sausage, hotpot sausage and breakfast sausage. The $3.0 million expansion adds production capacity of 30 metric tons per 8-hour working day, or approximately 10,800 metric tons on an annual basis, and is equipped with automated start-of-art technology for efficient processing. The Company began production of prepared meats on the new lines at the end of March 2007. "Our prepared meat products have been well accepted by consumers and wholesale clients in the Central and Northeastern China markets," commented Mr. Xianfu Zhu, Chairman of Board and CEO of Zhongpin. "We have implemented a creative marketing campaign and deepened our distribution channels, both of which have resulted in increased market demand for our prepared meat products. The combination of new products and additional capacity should enhance margins from our prepared meat products lines." About Zhongpin Inc. Zhongpin is a meat and food processing company that specializes in pork and pork products, and vegetables and fruits, in the PRC. Its distribution network in the PRC spans more than 20 provinces and includes over 2,290 retail outlets. Zhongpin's export markets include the European Union, Eastern Europe, Russia, Hong Kong, Japan and South Korea. For more information, visit the company's website at http://www.zpfood.com or contact CCG Elite directly. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Zhongpin's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward- looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: unanticipated changes in product demand, interruptions in the supply of live pigs/raw pork, downturns in the Chinese economy, delivery delays, freezer facility malfunctions, poor performance of the retail distribution network, changes in applicable regulations, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. Contact: Crocker Coulson, President Yuanmei Ma, Chief Financial Officer Leslie Richardson, Financial Writer Zhongpin Inc. CCG Elite 86-010-82861788 646-213-1915 crocker.coulson@ccgir.com
PR
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