"Our third quarter continued our good long-term trend of higher sales and net income,” said Xianfu Zhu, chairman and CEO. “The consistency of our operating and financial performance comes from our established strategy, business model, and effective execution, all of which have remained in place.”
Zhongpin continued its expansion in the third quarter. The improvement in itspre-cooling facility and expansion of its capacity in our Anyang plant was completed in August 2010 as planned. The plant's capacity for chilled and frozen pork has increased 35% to 85,000 metric tons from 63,000 metric tons.
The company will be investing approximately $61.5 million to build a slaughtering and processing plant, low-temperature prepared pork plant, logistics center, and research and development center in Nong'an county, Changchun, Jilin province of China. This facility will have a production capacity of approximately 70,000 metric tons for chilled pork, 25,000 metric tons for frozen pork, and 30,000 metric tons for prepared pork products. The construction work started in September. The company expects to put the new facility for chilled and frozen pork into operation in the fourth quarter of 2011 and the new facility for prepared pork products into operation in the third quarter of 2012.
The company will be investing about $63 million to build a production facility, warehouse and distribution center in Taizhou, Jiangsu province. This facility will have a production capacity of about 100,000 metric tons for chilled and frozen pork, of which 80% will be for chilled pork (including easy-to-cook products) and 20% for frozen pork, plus 30,000 metric tons for prepared pork products.
Construction started in October 2010. The company expects to put the new facility for chilled and frozen pork into operation in the third quarter of 2011 and the new facility for prepared pork products into operation in the second quarter of 2012.
As of Oct. 31, 2010, Zhongpin has already reached its expected year-end annual capacity of 563,760 metric tons for chilled and frozen pork and 90,000 metric tons for prepared pork products,
Zhongpin will establish a new joint venture with a nationally recognized professional sire boar breeder in Henan province. The registered capital of the new joint venture will be $2.2 million. Zhongpin will own 65% of the new joint venture, which will provide 5,000 premium sire boars annually. The new venture is expected to integrate the best resources of both companies and further enhance Zhongpin's role in the industry.
"Through 2015, we expect to expand our production capacity within the government's selected markets and further increase our market share across China, while continuing to expand our leadership in the meat industry,” Zhu said.