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Heineken production to be moved to China

SINGAPORE - Singapore-listed Asia Pacific Breweries Limited (APB) said it plans to finalize arrangements with its associate company, Heineken Asia Pacific Breweries China Pte Ltd (HAPBC), to move its production and marketing of Heineken lager to China.

APB and its substantial shareholders, Fraser and Neave Limited and Heineken, have agreed to adopt a "One China Organization" strategy to combine all their brewery operations in China, APB said in a statement.

Shareholder approval will be sought at an Extraordinary General Meeting to be convened.

HAPBC will initially contract the production of the popular international premium beer in China to its 97 percent owned subsidiary, Shanghai Asia Pacific Brewery Co Ltd. Currently, Heineken lager is imported, distributed and marketed in China by Heineken Trading (Shanghai) Co Ltd.

"Brewing Heineken lager locally will be the platform for the next phase of growth in China," said APB's chief executive officer, Koh Poh Tiong. "Capacity utilization of our Shanghai brewery will increase significantly, while cost savings arising from local production can be invested into building the Heineken brand and volume growth activities in the China market."

Mr Koh said the China beer market was estimated at 235 million hectoliters with a growth potential of 3 percent to 5 percent in volume over the next 10 years. More beer was now drunk in China than in the United States per capita, and China had become the largest beer market in the world in terms of volume.

(Asia Pulse)
 
Jan 13, 2004


 
         
         
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