The Chinese brewing venture in which Carlsberg has a participation has opened a new brewery in Qinghai province in the west of the country.

The new brewery, developed with an investment of US$15m, will have an initial production capacity of 0.6m hectolitres (hls), rising to 1m hls.

The partners in the venture are Carlsberg, which owns 33.33%, Lanzhou Huanghe Enterprise Co. in the Gansu province, also with 33.33%, the Qinghai Biological & Industrial Park Development & Construction Co. (16.67%) and the Danish government's fund for developing countries (16.67%).

"There is no brewery in the Qinghai province, and being the only brewery will give the joint venture competitive advantages, such as lower transportation costs," said Michael Fredskov, CEO of Carlsberg's Chinese operations, "and for mainstream beer generally local people prefer beer from their own province."