A consortium between Swedish brewer United Nordic Beverages and Lithuania's Alita plans to invest in the development of Serbian brewery Beogradska Industrija Piva to boost its brewing capacity.

An investment of EUR40m (US57m) will be made in BIP, which currently has an annual capacity of 1.5m hectolitres of beer, with plans to boost capacity by 2012 as well as putting into action projects to build a new brewery in Belgrade. The consortium will reportedly sell one of BIP's old breweries in three years, using the proceeds to develop the new facility.

The Serbian government agreed to sell 51.8% of the brewery  in July for EUR21.4m (US$29.6m), after choosing the bid of Alita and United Nordic Beverages over the Slovenian brewer Pivovarna Lasko.

BIP has four factories: two located in Belgrade, one in the town of Cacak in central Serbia and another in Leskovac, in the south.