Major China-based meat products manufacturer, Shuanghui Group, is to invest around CNY4bn (US$632m) in 2013 to expand production capacity.
A spokesman confirmed to just-food that Shuanghui will invest in “building new facilities, improving technologies and buying equipment,” adding that the company will also expand its sales network to smaller towns and rural areas across China.
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“The investment will come from internal financing and banks,” he added.
The Henan province-based company aims to increase its slaughter capacity to 17.5m pigs in 2013, up 53.5% from 11.4m in 2012. It also projects sales of its meat and meat products will reach 3.64m tonnes this year, up 67.7% from 2.17m tonnes in 2011, according to the company.
In a statement released to shareholders, Shuanghui said the investment was planned to meet growing nationwide domestic demand for meat and meat products.
According to China’s 12th five-year plan for 2011-2015 released in February 2012, processed meat products should account for more than 17% of total China meat production by 2015.
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By GlobalDataIn addition, city-based sales of chilled meat should be 30% of total meat sales, under the plan.
Shuanghui sells a variety of meat products, including chilled meat, fresh meat and ready-to-eat meat products.
