April 28, 2009 (FinancialWire) — Chinese meat and food processing firm Zhongpin Inc. (NASDAQ: HOGS) has begun construction of its new pork products facility located in the Jinghai Economic Technical Development Area in Tianjin City. The facility is expected to cost $62 million.

According to Zhongpin, the new facility will add 100,000 metric tons in annual capacity of chilled and frozen pork and 36,000 metric tons of low temperature prepared meat production capacity.

Zhongpin said will also build a new warehouse and distribution center, a research and development center, and employee living quarters.

The production lines for chilled and frozen pork products will come on line at the end of the company’s first quarter of 2010 and are scheduled to reach target utilization level by the end of the company’s third quarter of 2010.

Zhongpin said that the prepared meat production line and the new warehouse and distribution center will come on line in the third quarter of 2010 and is expected to reach target utilization level by the end of the fourth quarter of 2010.

The company plans to terminate its lease at its existing Tianjin City facility after the new facility begins production. With the addition of the new facility and closure of the existing leased facility in Tianjin City, Zhongpin’s annual chilled and frozen pork production capacity will increase by 9%, reaching 545,760 metric tons from the current 498,760 metric tons.

China-based Zhongpin is a meat and food processing company that specializes in pork and pork products, and fruits and vegetables in the PRC. Its distribution network in the PRC spans 20 provinces and four cities, and includes over 3,061 retail outlets. Zhongpin’s export markets include the European Union, Russia, Eastern Europe, and South Africa.

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