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Kingway Brewery Holdings is to build a new brewery in China.

The company, part-owned by Heineken, said today (24 February) that it had entered into an agreement with the management committee of the Chengdu Hi-tech Industrial Development Zone in China to establish a new brewery in the city. The facility will cost around US$100m, Kingway noted.

After the first phase of construction, at a cost of US$50m, annual production capacity would be around 200,000 tons.

Kingway chairman Ye Xuquan said: "The company may consider implementing phase two of the project with an additional annual production capacity of 200,000 tons," depending on demand.

"The directors are of the view that the establishment of Kingway Chengdu is a good opportunity for the group to expand its market presence in Chengdu, Sichuan and the southwest region of China," Ye told local reporters.

Heineken holds a 21% stake in Kingway. Late last week, Kingway dashed Heineken's hopes of gaining a majority stake.

The chairman of Kingway's parent company, Guangdong Investment, told local reporters last Tuesday: "We have no intention of allowing Heineken to hold more than 50% of Kingway despite its long-held interest in increasing its shareholding."


Sectors: Beer & cider

Companies: Heineken

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