China's leading beer producer Tsingtao Brewery is planning to increase its production capacity by 1m tons by the end of 2007, according to local reports.

Tsingtao president Jin Zhiguo told reporters that the company had already stepped into a new period of integration and expansion this year.

By the end of 2007, Tsingtao is reportedly planning to have essentially completed five expansion projects, adding a total additional capacity of 1m tons.

In addition to expanding its operations in Shandong Province, Tsingtao is also expected to build new plants in Yulin, Shaanxi Province and the Chengdu Municipality.

Tsingtao is 27%-controlled by Anheuser-Busch.