Yurun sets out massive expansion plans

China Yurun Food Group Ltd, the country's biggest hog processor, will spend HK$4 billion to expand and acquire rivals, seeking to benefit from tighter regulations and a government stimulus plan.

The company plans to double capacity and has enough cash and loans to fund the expansion over the next two years, Chief Operating Officer Zhang Yuanfei said in an interview in Harbin city, northeast China.

China announced on Sunday a 4 trillion yuan stimulus plan to revive growth in the world's fourth-largest economy amid the global financial crisis. Rising incomes in China has spurred consumption of meats and the government has introduced laws to reduce the number of hog processors.