Beijing Yanjing Brewery is to build a brewery in the west of China, according to local reports.

China News Digest said today (21 March) that the company had signed a deal to invest CNY200m (US$24.9m) in the construction of the brewery in Shihezi, located in the Xinjiang region. The new facility will be located in the Shihezi Economic and Technological Development Zone and will initially have an annual production capacity of 100,000 tonnes of beer.

Construction is scheduled to start next month, the news agency added, and production should begin at the end of October. The site will have initial annual production capacity of 100,000 tonnes of beer, although this will be doubled in the future.

The Shihezi unit will be Yanjing's 22nd subsidiary in China. In October last year, Yanjing announced that it would form a new company in Cangzhou, Hebei Province, trading as Hebei Yanjing Beer Company.