Asia Pacific Breweries has set up its regional headquarters for China in Shanghai through its associate company Heineken-APB (China). The headquarters, known as Heineken-APB (China) Management Services, will oversee the operations and investments activities in the country.

Heineken-APB (China) is owned by APB and Asia Pacific Investment Pte Ltd, a joint-venture between Heineken and Fraser & Neave. APB itself is also a joint venture between the two.

Speaking to Business Times Singapore, Koh Poh Tiong, APB's chief executive officer said: "China has the largest beer market in the world with an estimated sales volume of 291m hectolitres of beer in 2004...The regional headquarters will further drive our growth plans to enhance our brewing operations and forge strategic alliances with domestic players."

By basing the headquarters in Shanghai, APB will enjoy benefits such as preferential tax incentives and ease of entry and extended stay for foreign employees working in China.

Last month, APB posted a Q2 net profit of SGD35.3m (US$21.3m) against SGD34m for the same period in 2003/04.