Chuying Farming has announced that it plans to invest RMB 177 million in building a 200,000-ton-per-year output meat processing plant in Weishi County in Henan Province, China. The primary products will include both warmed and frozen ham sausage and Chinese-style sauces, according to the company.
The company projects that the sales income of the above-mentioned products will be around RMB 880 million after the plant is finished. After calculating taxes, the annual profit will be around RMB 41 million. Using these rates, it will take 4.1 years for the company to recover its investments in profits, counting a construction time of one year.
Chuying Farming has said that the construction of this project supports Weishi County’s 1-million-head-per-year pig slaughtering project, and part of the additional products from the plant will be consumed locally, so as to save on transportation costs. It will simultaneously integrate the production scale and ensure meat safety. After the project is completed, it will improve Chuying’s industry chain, optimize the company’s production composition and improve the company’s sustainable development, according to Chuying.