Hong Kong: Guangdong Brewery Holdings said on June 1, 2004 it signed a letter of intent to build a 375 million yuan ($1=CNY8.28) brewery to boost production by 200,000 metric tonnes per annum. The company said it plans to finance the plant with its own cash, bank borrowings, or debt or equity fund raising, according to Reuters.

"The investment in the brewery is a good opportunity for the group to further increase its production capacity, add to its supply chain and network of strategically located breweries and represents another major step to penetrate into the Guangdong beer market, in particular the Pearl River Delta region," it said.

Construction is planned to begin early next year with the plant entering production in early 2006, making Guangdong Brewery's Kingway brand of beer. Guangdong Brewery said it may subsequently consider doubling production at the plant by a further 200,000 tons.

The company said last month it would ask shareholders to approve a name change to Kingway Brewery Holdings Ltd. to better reflect the importance of its biggest brand of beer.

01 June, 2004