Zhongpin to Open New Premium Pork Oil Plant

Posted: July 1, 2010 in Uncategorized
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— Zhongpin Inc. (“Zhongpin”, Nasdaq: HOGS), a leading meat and food processing company in the People’s Republic of China, today announced that it will open its new premium pork oil plant on April 12, 2010. The new plant is located within the Zhongpin Food Industrial Park in Changge, Henan province, China.

Mr. Xianfu Zhu, Chairman and CEO of Zhongpin, said, “In addition to increasing our brand identity, core competencies, product lines, and production capabilities, this new business line has two other important benefits. First is an expected increase in our return on investment, which is one of our primary financial goals. The second benefit is further yield from the hogs we use in our pork production, since premium pork oil will be a new co-product for us. We believe that our customers, company, and shareholders should be enhanced by our new product line.”

The new plant was designed to use state-of-the-art manufacturing processes, including the most modern process engineering and integrated information technology advances, which are similar to those used in Zhongpin’s most recent pork production plants. Zhongpin’s premium pork oil will be sold through the company’s existing sales channels to institutional, wholesale, and retail customers. So far, Zhongpin has completed pre-production contracts with institutional and wholesale customers. The plant’s designed capacity will be 20,000 metric tons of premium pork oil each year. Construction began in September 2009. The total investment in the new project will be about RMB 38 million or US$ 5.6 million.

About Zhongpin

Zhongpin Inc. is a meat and food processing company that specializes in pork and pork products, vegetables, and fruits in China. Its distribution network in the China covers 20 provinces plus Beijing, Shanghai, Tianjin, and Chongqing and includes more than 3,000 retail outlets. Zhongpin’s export markets include the European Union and Southeast Asia. For more information about Zhongpin.

Safe harbor statement

Certain statements in this news release are forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Zhongpin has based its forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect its business strategy, results of operations, financial condition, and financing needs. These projections involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include but are not limited to such factors as downturns in the Chinese economy, unanticipated changes in product demand, any effect from the A(H1N1) virus on Zhongpin’s market or sales, interruptions in the supply of live pigs and or raw pork, poor performance of the retail distribution network, delivery delays, freezer facility malfunctions, Zhongpin’s ability to build and commence new production facilities according to intended timelines, the ability to prepare Zhongpin for growth, the ability to predict Zhongpin’s future financial performance and financing ability, changes in regulations, and other information detailed in Zhongpin’s filings with the United States Securities and Exchange Commission.

You are urged to consider these factors carefully in evaluating Zhongpin’s forward-looking statements and are cautioned not to place undue reliance on those forward-looking statements, which are qualified in their entirety by this cautionary statement. All information provided in this news release is as of the date of this release. Zhongpin does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required by law.


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