BEIJING, CHINA — Two payments totaling approximately $3.1 million in cash subsidies from the Chinese government have been given to Zhongpin Inc., a leading meat and food processing company in the People's Republic of China.
The company recently received a subsidy cash payment of approximately $2.9 million from the Chinese government to help support the development of the company's new pork plant in Tianjin, which is under construction. Zhongpin expects the plant to be completed in the first quarter 2010. It will produce chilled and frozen pork and will have a total annual capacity of 100,000 metric tons for chilled and frozen pork products.
Zhongpin also recently received a subsidy cash payment of about $204,700 to help support its new premium food-oil plant currently under construction in Changge in the Henan province.
China's policies this year have encouraged meat-processing companies to further modernize and improve products and processes. China's National Development and Reform Commission approved subsidies on 2009 for Zhongpin's three new pork processing projects, one project in Tianjin and two projects in Changge.
"We have embraced and adopted every modern technology available to produce our food products with the highest product quality and safety," said Xianfu Zhu, chairman and chief executive officer of Zhongpin. "We were very grateful to receive the subsidies from the Chinese government to help support our expansion. As the meat-processing industry consolidates in China, we believe that Zhongpin will thrive as the safest and one of the largest and most profitable suppliers."
Specializing in pork and pork products, vegetables and fruits in China, Zhongpin Inc.’s distribution network in that country 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.