JAPAN: Asahi, Kirin to boost beer output in China - report

By | 29 October 2007

Asahi Breweries and Kirin Holdings Co. each have plans to expand beer output in China, according to reports.

The Nikkei news agency reported on Friday (26 October) that with home markets contracting, they aim to focus efforts on tapping the rising demand in the Chinese markets.

Asahi Breweries is reportedly looking at spending JPY2.23bn (US$19.4m) to double its production capacity at its joint venture with the Chinese Tsingtao Brewery Group and trading house Itochu Corp.

The company also plans on raising capacity at its Hangzhou subsidiary from 100,000kilolitres to 300,000kl a year.

The Japanese beer maker has a stake in four Chinese partners, which posted a total capacity of 670,000kl for last year. By 2010, the company plans to raise this to 1.03m kilolitres.

Meanwhile the news report added that Kirin's new factory in Zhuhai opened last month. The facility has the capacity to produce 200,000kl a year, twice the capacity of the existing plant. The Nikkei said that Kirin has already secured land for expansion so that capacity could be raised to as much as 400,000kl annually.

Sectors: Beer & cider

Companies: Asahi, Kirin, Tsingtao

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