A new plant of Shuanghui Group in Zhengzhou, China, became operational on December 18, according to the news released on the official website of Shuanghui Group.
The plant is located in Shuanghui Industrial Park in Zhengzhou National Economic and Technological Zone. The US$1.23 billion plant covering an area of 21,000 square meters can produce 100 tons of meat products per day. The meat products fall into three main categories: American bacon, ham and sausages.
The project in Zhengzhou China is the first of its kind since Shuanghui Group launched its international development strategy. In late May, 2013, WH Group (parent company of Shuanghui) acquired Smithfield Foods-- the largest hog producer and pork supplier in the world—for US$7.1 billion, setting the record for the largest acquisition in the history of relations between China and the United States.
One of the synergistic effects of the acquisition is that with cheaper pork from the United States, Shuanghui can produce quality meat products at lower costs. On the opening ceremony held the next day, Wan Long, chairman of the board of WH Group mentioned in his speech that the plant would make full use of the raw materials of Smithfield, its brand influence and technologies. Smithfield Foods is a technology-enriched producer good at developing high-end products with high value added. Benefited from such strengths, Shuanghui Group can introduce more meat products favored by American consumers to China to meet increasing domestic demand.