China: InBev, the world’s largest brewery by volume acquires China's Hubei Dangyang Xuebao Brewery for 7.5 million yuan (US$907,276) with the purpose to strengthen its position in central China, the South China Morning Post reported in a statement on November 23. The brewery said it already had 30 pct of Hubei's market, the paper said.

The Hong Kong-based newspaper said InBev, through its subsidiary Interbrew China, intends to invest a further 30 million yuan to upgrade the brewery and increase its annual production capacity to 500,000 hl of beer.

Earlier this month, Inbev acquired the remaining 45 % shares in Hunan Debier Brewery based in Hunan province for USD 18.2 million cash.

The Belgian brewer, InBev, the new brewing conglomerate born out of the merger between Interbrew SA and Brazil's Ambev, is the third largest brewer in China, with a production capacity of 30 m hectoliters, a market share of over 10% and 18 breweries. It has operations in the Zhejiang, Guangdong, Hubei, Hunan, Jiangsu and Shandong provinces. The company has been active in China since 1984, providing the transfer of technical and brewing know-how to various Chinese brewing companies, including the Zhujiang Brewery in Guangzhou. In 1997, InBev entered the Chinese beer market as an operator with the acquisition of the Nanjing and Jingling Breweries. In 2002, it acquired a 24 per cent share in the Zhujiang Joint Stock Company, China’s fifth largest and most profitable brewer on a per-tonne basis, and a 70 per cent stake in K.K. Group’s brewing business, based in Zhejiang Province. In 2004, InBev acquired the China brewery activities of the Lion Group of Malaysia, providing Interbrew China with leading market positions in the six provinces where it is present. In July 2004, InBev also acquired 70 per cent share in Zhejiang Shiliang Brewery Company Ltd. in Zhejiang province. InBev's longstanding interaction with its Chinese partners has provided the company with strong local relationships and a good understanding of the Chinese beer market.

The brewing giant currently has two breweries in the Eastern Chinese province of Hunan (66.6 million inhabitants) - the Hunan Debier Brewery in the city of Changsha and Zhuzhou Debier Brewery Co. Ltd in the city of Zhuzhou.

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