China: Tsingtao Brewery unveiled plans to build new CHY300 million plant in Shandong

Tsingtao Brewery Co Ltd said its board of directors had approved plans to build a plant with annual output of 4 million hl of beer in Jinan, Shandong province, Forbes released August 29.

It said in a statement the total investment for this project may reach CHY300 million and the plant should be completed and put into operation by the end of 2007.

The company said the project will expand the company's existing market share in Shandong after its completion.

Separately, the company said it will relocate Tsingtao Brewery (Xuzhou) Pengcheng Co Ltd (Pengcheng Co). It said the output capacity of Pengcheng Co could be increased to 1.5 million hl from 0.8 million hl, with additional investment of CHY62 million.

Pengcheng Co will offset losses from the relocation with gains from the sale of land at the old plant, it said. Anheuser-Busch Co of the US holds around 27 pct stake in Tsingtao.

(USD1 = CHY7.97)

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