V&S Absolut Spirits has broken ground on a new distillery in the south of Sweden. The spirits manufacturer began construction of the facility in Ahus yesterday (12 May).

V&S plans to invest around SKK360m (US$50m) in the distillery, which will have a targeted annual production capacity of around 22m litres. The distillery is expected to be completed and in operation in 2007.

With a total area of 10,000 sq m, the new site will operate in parallel to the company's central distillery in Ahus.