Sun Interbrew, the joint venture between Interbrew and Sun Brewing,  hasbegun construction of a €14m malt house in Kharkiv in the Ukraine, the local press reported today.

Construction is expected to be completed in 2004. With an initial annual production capacity of 45,000 tonnes, it is planned that the new malt-house's capacity will be raised to 90,000 tonnes of malt a year.

The company is expecting the facility to fully meet malt consumption needs at all the breweries it runs in Ukraine (Rogan, Desna and Yantar). Some of the malt produced may also be sold to other Ukrainian breweries.

Sun Interbrew Ukraine is the country's biggest brewery. The breweries it owns produced 372m litres of beer in 2001, up 21.4% year-on-year.