Danish Carlsberg, the world's fourth-largest brewer by sales, has reached a deal to build a massive brewery in the Chinese province of Yunnan to serve growing beer demand in the vast country, the company's chief executive said Tuesday.
The investment deal will be signed Friday by Carlsberg and the Yunnan province's governor, who arrives in Copenhagen Thursday with China's president as part of the first official Chinese state visit to Denmark.
Until 2025, Carlsberg will invest 4 billion Danish kroner ($676.91 million) in the gradual, modular construction of the new large-scale brewery, which is set to reach a production capacity of 10 million hektoliters a year.
In comparison, Russia and Eastern Europe's largest brewery, Carlsberg-owned Baltika, has a production capacity of 12 million hektoliters a year.
"This investment reflects the large growth in the Chinese market and our confidence that it will continue in the years to come," Carlsberg Chief Executive Joergen Buhl Rasmussen said.
Carlsberg is already engaged as part or full owner in 47 breweries in China, but none on a scale comparable to the new brewery.
The brewery will brew Carlsberg's flagship Carlsberg and Tuborg brands, but the main brand will be the local Dali beer, named after the city where the brewery will be based.
Copyright (c) 2012 Dow Jones & Company Inc.
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