Process engineering and information technology improvements have increased the plant's annual production capacity by 37 percent, from 59,760 metric tons to 81,760 metric tons, at a cost of approximately US$ 6 million. This higher capacity will help support Zhongpin's expansion into new markets for its chilled and frozen pork products.
With the upgrade of the Changge plant, the company has ended the lease of a plant in Hengshui, Hebei province.
Going forward, this newly modernized plant in Changge and the new plant in Tianjin that is currently under construction will assist Zhongpin to better serve its important north China market including the affluent cities of Beijing, Tianjin, and Tangshan.
The new Tianjin plant, which is expected to begin pork production by mid- February 2010, also will have state-of-the-art processes to produce chilled and frozen pork products of the highest quality and safety.
Mr. Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin, said, "We are very pleased with our new upgraded slaughtering and processing facilities, which were completed on schedule. As a significant phase in our capacity expansion plan, this partial rationalization of our production network is another important milestone in our development and helps us increase production and distribution efficiency. The newly modernized Changge plant and the coming new Tianjin plant will benefit from the same modern process engineering and information technology advances we have been applying to all our facilities. We have only one production standard - to make the highest quality pork products in the world.
"Zhongpin's market in north China includes consumers, distributors, restaurants, and organizations that require outstanding quality, safety, taste, and nutritional value from its products, plus on-time delivery -- just as all of our customers do. Zhongpin is well known for providing the highest product quality and safety at competitive prices.
"We will serve the market surrounding the Bohai Bay from our Changge and Tianjin plants as well as other neighboring plants by using our advanced cold- chain distribution system. We are confident in our market expansion in the near future"
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