CHANGGE CHINA — Zhongpin Inc. announced its pork-processing plants under construction in Tianjin and Changge will receive subsidies from the Chinese government. China's policies this year have been encouraging meat-processing companies to modernize and improve their products and processes.

Zhongpin applied for subsidies earlier this year, which were approved by China's National Development and Reform Commission for its three new pork-processing facilities.

Currently under construction, the company’s two plants are scheduled to begin initial production in the first and third quarters of 2010. Combined, they have been promised a subsidy of RMB 20 million (U.S.$ 2.9 million) to help support the development of the plants. Once construction is completed, the two plants will have a total annual capacity of 136,000 metric tons for chilled, frozen and prepared pork products.

A subsidy of RMB 13.8 million ($2.03 million) was also promised by the Chinese government for Zhongpin's new Changge plant, which is located in the Henan province. Currently under construction and scheduled to begin production in the fourth quarter of 2009, this plant will have an annual capacity of 36,000 metric tons for prepared pork products.

Zhongpin was also awarded a subsidy of RMB 4 million ($600,000) to support the expansion and further improvement of its integrated production, cold-chain logistics, and information system.