HAPBC to open brewery in Guangdong

China - Heineken-Asia Pacific Breweries Limited (HAPBC) will be developing a brewery in Guangdong, in an effort to accelerate its footprint in South China and to expand in the Hainan market.

Investment in the greenfield brewery in Huangpu is estimated at approximately RMB$600 million (S$120 million). It will be funded by a combination of external borrowings and internal funding by HAPBC's shareholders in proportion to their respective shareholdings, the company said in a release.

Koh Poh Tiong, CEO of APB said that HAPBC's organic growth will push the company forward by the added capacity in the new Guangzhou brewery. "Thus, it is opportune that we invest in a plant in Guangzhou now so as to forge a more significant presence in South China where the affluent coastal areas of Pearl River Delta, including Guangzhou and its neighbouring cities, account for over 80% of the 31 million-hectolitre Guangdong beer market," he said.

"The Chinese economy is expected to continue to thrive, presenting greater opportunities to be tapped on and signifying further growth in the nearly 400 million-hectolitre beer market which grew 12% in 2007."

The brewery is expected to begin production by the end of 2009. HAPBC is equally-owned by APB and Asia Pacific Investment Pte Ltd, a 50-50 joint venture of Fraser & Neave (F&N) and Heineken.