Under the deal, the two companies will build a facility in Henan province that will include feed processing, breeder production, broiler production, slaughtering, and processing. It is scheduled to be completed in 2010.
Shineway will own the joint project, Lei Yuting, a manager in the company's investment and development office, told Poultry International.
Nippon Meat Packers will be responsible for the broiler production, he added.
Currently, Henan-based Shineway Group produces processed chicken products, but does not operate any broiler farms or broiler slaughterhouses.
According to Lei, the company’s new plant is expected to provide 50 million birds to its own processing factories and food services every year, with 3 billion yuan of annual sales income.
The new facility will help Shineway take on China's current market leader, Shandong-based Liuhe Group Co. Ltd., which ranks first with 200 million birds of annual output.