Kingway Brewery has reportedly started building its brewery in the Chinese city of Chengdu.

The brewer, part-owned by Heineken, announced plans to build the plant, located in the south-western province of Sichuan, in February. The brewery is designed to have an annual capacity of 200,000 tonnes.

Reports in China yesterday (6 July) said construction had begun. When the plans were announced, Kingway chairman Ye Xuquan said the brewer would boost capacity by another 200,000 tonnes, depending on demand.

The initial investment will cost Kingway around US$50m.