Dec 27, 2011
China Minzhong Marks Official Start at New Industrial Park with Healthy Orderbook
- Processing capacity at New Industrial Park approximately 3 times the current capacity.
- Sees no slowdown in demand for vegetables so far despite European crisis and global economic uncertainty and expects the entire export order book to be higher in FY2012 compared to FY2011.
- Expects positive contribution from New Industrial Park in FY2012, alongside with maiden harvests from 22,176 mu of new productive farmland.
- Opening ceremony held in conjunction with China Minzhong’s 40th year anniversary celebration – testament to the Group’s long operating track record
China Minzhong Food Corporation Limited (中国闽中食品有限公司) (“China Minzhong” or the “Group”) (SGX: K2N), is pleased to announce a successful official opening ceremony of its New Industrial Park processing facilities in Putian City, Fujian Province, PRC last week. The New Industrial Park - with a processing capacity of approximately 3 times the size of China Minzhong’s current processing capacity – will offer an additional engine for growth as the Group enters the operating peak period with a healthy order book position. The Group expects the New Industrial Park to achieve full utilization within the next three years.
Foreground: Mayor of Putian City, Mr. Liang Jian Yong (2nd from right) gracing the opening ceremony and accompanied by China Minzhong’s CEO, Mr. Lin Guo Rong (1st from right).
Capitalizing on the strong demand, the Group has accelerated the construction completion of its new processing facilities to be in time for the current peak season. The New Industrial Park houses a comprehensive suite of equipment for various processing methods which includes airdrying, freeze-drying, brining, fresh-packing, IQF (Individually Quick Frozen) processing, etc. The wide range of processing capabilities enables the Group to cater to different customers’ preferences in various regions of the world. For instance, brined products are generally more preferred by the Group’s customers in South America, while air-dried orders will be in greater demand in the US and European markets. Despite the ongoing European crisis and the global economic uncertainty, the Group sees no slowdown in overall demand for vegetables as a food staple so far and we expect the entire export order book to be higher in FY2012 compared to FY2011. The ability and flexibility of being able to switch between various processing methods also allows the Group to capitalize on demand opportunities in different regions of the world within short notice.
Top: Artist impression of New Industrial Park; Bottom: Processing facilities in New Industrial Park
The official opening ceremony at the New Industrial Park is held in conjunction with the celebration of the Group’s 40th year anniversary - a testament of China Minzhong’s long operating track record. Speaking at the opening ceremony, Chief Executive Officer and Executive Director of China Minzhong, Mr Lin Guo Rong (林国荣) said, “Over the years, China Minzhong has grown significantly in scale across vast geographical boundaries and seen improvements in production capabilities, specialized product knowledge, management experience and recognition from our long term customers worldwide. Today, we are one of the largest integrated vegetable processor in the PRC, owing to our stringent emphasis on quality assurance and strategic focus on high value products. The New Industrial Park marks a significant milestone in the Group’s operating history and is expected to open new doors for the next phase of growth.”
The New Industrial Park is expected to contribute positively to the Group’s financial performance in FY2012, alongside with maiden contributions from 22,176 mu of new farmland added in the last financial year. The Group has recently announced its first quarter results for the three months ended 30 September 2011. Compared to the previous corresponding period last year, net profit recorded a 77.9% growth on the back of 36.8% revenue increase.