Ningbo Tech-Bank, founded in 1997 in Ningbo, Zhejiang province, has developed rapidly in the recent years with support from international cooperation, he said. The company initially focused on animal feed, animal vaccines, aquaculture and biodiesel, before expanding to swine breeding in 2013.

That same year, Ningbo Tech-Bank set up Hanswine and announced the takeover of AgFeed Industries Inc's assets in China for $48 million. AgFeed, listed on the Nasdaq, was a US company with primary operations in China.

In the following year, Han-swine raised about 500,000 hogs, sows and boars, making it one of China's top 10 swine-breeding companies. "We are confident we can reach annual production of 3 million swine in five years," said Fu.

Huang Chaoyang, executive general manager of Han-swine, said that when annual production reaches 1.5 million hogs, the company will build a slaughterhouse and meat-processing plant.

China is the world's largest hog producer, with more than 735 million raised in 2014, up from 715 million the previous year, according to the National Bureau of Statistics.

Fu warned that China's hog industry faces overcapacity. "Even without imported pork, domestic output can almost satisfy the needs of Chinese consumers," said Fu.

Fu said that overcapacity will not deter Ningbo Tech-Bank from expanding into the hog industry. Rather, it will give the company more opportunities, since its average costs are lower than many of its domestic peers.

Contact the writers at zhulixin@chinadaily.com.cn and machenguang@chinadaily.com.cn

(China Daily USA 06/15/2015 page15)