Carlsberg has secured a brewery joint venture in China. The Danish beer company has signed an agreement with Ningxia Land Reclamation Enterprise Group to cooperate on beer production.

The joint venture, based on a letter of intent signed by the two groups last year, requires an investment of around CNY200m (US$24.7m) with a view to producing 200,000 tons of beer a year. Annual capacity for the brewery is projected to be 300,000 litres.

The first phase of the project targets 100,000 litres and is scheduled to complete next year, while the second phase, which should bring the brewery up to the projected capacity, will begin in three years' time.

No-one was available for comment at Carlsberg when contacted today (3 November) by just-drinks.