Guangdong Brewery Holdings is looking to up production with the construction of a new plant. The company announced earlier this week that it has signed a letter of intent to build a RMB375m (US$45.3m) brewery to increase production by 200,000 metric tons a year.

Guangdong said it intends to finance construction with its own cash, bank borrowings, or debt or equity fund raising.

In a statement, the company said: "The investment in the brewery is a good opportunity for the group to further increase its production capacity, add to its supply chain and network of strategically located breweries and represents another major step to penetrate into the Guangdong beer market, in particular the Pearl River Delta region."

Construction is scheduled to begin early next year, with the plant entering production in 2006. The brewery will make the company's Kingway beer brand.