BEIJING and CHANGGE, China, Dec. 3 /PRNewswire-Asia-FirstCall/ -- Zhongpin Inc., a leading meat and food processing company in the People's Republic of China ("China"), today reported it has received two payments totaling RMB 21.4 million (about $3.1 million) in cash subsidies from the Chinese government.
Zhongpin has recently received a subsidy cash payment of RMB 20 million (about $ 2.9 million) from the Chinese government to help support the development of its new plant in Tianjin. The new plant, which is under construction, will produce chilled and frozen pork and is expected to be completed in the first quarter 2010. When all the construction phases are completed in 2010, the new Tianjin plant 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 RMB 1.4 million (about $ 204,700) to help support its new premium food oil plant currently under construction in Changge in the Henan province.
China's policies in 2009 have encouraged meat processing companies to further modernize and improve products and processes. As Zhongpin previously announced, 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.
Zhongpin has been an industry leader in modernizing meat production by selecting, integrating, and applying the most modern industrial process engineering, quality assurance, biological validation, cold-chain logistics, and information technology systems. As a result, Zhongpin has the highest level of food quality and safety in every step of its entire process -- from farm to fork.
Mr.
Xianfu Zhu, Chairman and CEO of Zhongpin, said, "We have embraced and adopted every modern technology available to produce our food products with the highest product quality and safety.
"We were very grateful to receive the RMB 21.4 million subsidies from the Chinese government to help support our expansion, which helps us provide the safest and most-popular protein for China's citizens.
"I believe the cash subsidies we have received and will receive from the government, not only help us as we expand our business, but also provide a tangible indicator of the respect we have earned with the government and our customers. We have worked very diligently to lead the way, because we believe that our innovation is in the absolute best interests of our customers and our investors.
"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."
