Once the agreement receives government approvals, it will give Tyson 60 percent ownership in vertically integrated poultry operations consisting of Xinchang's existing assets, as well as the acquisition of a new poultry processing complex on the east coast of Shandong Province.

Shandong Xinchang Group is a leading poultry producer in China, with estimated sales of $345 million in 2009. The name of the venture between the two companies will be Shandong Tyson Xinchang Foods Company.

"This joint venture will enable us to help meet China's appetite for poultry, which has been growing faster than the existing domestic supply," said Rick Greubel, group vice president and international president for Tyson Foods.

The agreement marks Tyson's third joint venture poultry operation in China.

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