Carlsberg has entered an agreement with Ongo Investment Pte Ltd, a Singapore registered company, and various minority shareholders to acquire 34.5% of Wusu Brewery, located in the Xinjiang Autonomous Region in North West China.

The brewery will in the future be operated in a joint venture between Carlsberg and the Blue Sword Group, a local company in the region.

The parties have agreed not to disclose the acquisition price.

Wusu Brewery has a capacity of approximately 2.5m hl and a 60% market share in the region (equivalent to a total sales volume of 1.5m hl beer). 

Annual per capita consumption of beer in the region is around 14 litres, which is below the national average of 20 litres per year, giving significant potential for growth.

"The acquisition of Wusu Brewery is a further step in fulfilling Carlsberg's strategy to establish a strong position in the western Chinese provinces," said Jesper B. Madsen, Carlsberg's senior vice president for Asia.

"Recently, Carlsberg invested in the market leaders in the Gansu Province and in Tibet. Carlsberg also has a joint venture with our partner in the Gansu province to build a greenfield brewery in Qinghai province. Finally, Carlsberg bought the leading brewery in the Yunnan Province last year. With future engagements in several breweries, Carlsberg is now in a market leading position as well as the only international brewer with significant presence in the western part of China which geographically constitutes about one third of China and has more than 100 million inhabitants."