The Latin American giant Companhia de Bebidas das Americas (AmBev) has said that it expects to buy land for a planned brewery in Peru by the end of the year.

Once the acquisition has been made the company said it will then take another year to build the plant, in an investment of US$40m. The plat will have a production capacity of 1m hectolitres a year.

"We hope to try to close the deal on the land by December," AmBev Peru director general Carlos Bembhy told newspaper Gestion.

A company statement said: "In a first stage, the company will generate about 1,300 new jobs, both directly and indirectly," the company said in a statement released Tuesday.

It is hoped the plant can be used to export beer to Andean nations.