Australian brewer Barons Brewing has joined forces with Independent Liquor Group (ILG), to build a A$30m (US$30m) domestic brewing facility in ILG's Sydney warehouse.

The alliance will be profitable for both parties, the companies said today (20 October), while allowing them to offer a greater range of products with more competitive pricing.

"Building our own brewery is a major move for Barons," said Barons founder Scott Garnett. "The retail liquor market is crying out for another serious competitor and the Barons/ILG brewery will be there."

Barons will build, own and manage the brewery, while ILG will provide the site and handle distribution.

"By locating the brewery at ILG, Barons is now in control of its own destiny and will be a serious player in the domestic beer industry" said Sean Neylon, founding director of Barons.

The Barons Brewery will be built on-site at ILG's Erskine Park facility. It will have the capacity to produce 250,000 hectolitres of beer per year, and accommodate a 100-200 hectolitre brew house, translating to around 3.2m cases of packaged beer per year.