SABMiller has revealed plans to build a new brewery in southern China. The brewer plans to spend RMB680m (US$82.3M) on the new brewery with its joint venture partner China Resources Enterprise Ltd.

In a statement issued today (Thursday), China Resources said that construction will begin iin November on the facility, located in the southern city of Dongguan. Operations are expected to begin in early 2006.

SABMiller holds a 49% stake in China Resources Breweries. The remaining 51% is owned by China Resources.

The southern China region is considered an affluent market, with China Resources Enterprise believing that construction of a new brewery rather than acquisition is the best way to gain access to the market.

Earlier this year, SABMiller lost out to Anheuser-Busch in a biddng war for China's Harbin Brewery.