Carlsberg has set up an investment joint venture in the north-west of China, according to local reports. The official Xinhua News Agency said on Sunday (29 May) that the Danish brewer has bought up a 49% stake in a joint venture in the Xinjiang region with Lanjian (Group) Co., a beer and soft drinks maker in south-west China's Sichuan province.

The holding cost Carlsberg US$46.3m, the agency reported.

Citing an unnamed source from the region's Bureau of Foreign Trade and Economic Cooperation, the agency said that the venture was Xinjiang's first foreign-backed company. The new company will invest in beer and beverage projects and training, Xinhua added.

Last year, Carlsberg and a Denmark government-backed investment fund agreed to buy a 50% stake in a brewery group based in Lanzhou, capital of Gansu province, located next to Xinjiang. The Danish comapny also joined with Singapore-registered Ongo Investment and minority shareholders to buy a 34.5% stake in Wusu Brewery, a beer maker based in Xinjiang.