Anheuser-Busch has begun work on its new brewery in the Fengnan District of Tangshan in the Hubei province of north-east China.

The new brewery, announced in March, will cost US$49m for the first phase of development and will replace a smaller brewery downtown.

The brewer said the investment is an effort to relocate industrial facilities outside the city and redevelop Tangshan "into a more residential and commercial area".

The new brewery, which will be built on a 160,000 square metre site, will have an initial production capacity of 3.1m hectolitres equal to 2.6m barrels, and is due to be fully built by the end of next year.