China: China Resources Snow Breweries to re-invest CNY320 million in Henan beer operations

China Resources Snow Breweries is said to re-invest CNY320 million in acquiring the beer production equipment, upgrade, and purchase of new equipment following the acquisition of Yuequan brand in May, SinoCast communicated on November, 25.

The move is expected to increase the capacity to 200,000 tons based on existing 100,000 tons of Yuequan Beer.

After put into operation, the new plant's sales revenue shall hit CNY 350 million. The plant is designed to specialize in high-end snow series beer, with target market in four cities, Zhumadian, Zhoukou, Shangqiu, and Xinyang in Henan Province, and Xuzhou.

Insiders believe that move will sharpen China Resources Snow Breweries' competitiveness in Henan, a big beer province taking the second place in the output and sales of beer just following Shandong.

Since this year, Henan has become a battlefield for each large-sized beer maker. China Resources Snow Breweries spent CNY27 million purchasing Yuequan Beer. Beer giant Yanjing also spent CNY227 million acquiring the third largest beer factory in Henan, it is reported.

26 November, 2010