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SAB buys fourth brewery in China

13 November 2004

The South African Breweries Limited (SAB) has announced that its Chinese joint venture, China Resources Enterprises Beverage Limited (CREB) - in which SAB holds a 49 percent interest - has purchased a 90 percent stake in the brewing assets of the Sichuan Yatai Brewing Company for US$10,8 million.

The assets of the Yatai Brewery, situated in the city of Mianyang in the Sichuan province of China, will be housed in a new company, named China Resources (Mianyang) Brewing Company Limited. The 10 percent balance of ownership will be held by Sichuan (Asia Pacific) Holdings Company Limited.

Further investments will be made in terms of rehabilitation and upgrading as well as working capital requirements.

Through CREB, SAB has, over the last two years, acquired joint control of three other major breweries serving the province of Liaoning: the two breweries in Shenyang City and the Dalian brewery in Dalian. SAB also has an interest in the Shenzhen C'est Bon Food and Drink Company in the Guandong Province.

The new brewing concern with a capacity of 700 000 hectolitres per annum, now marks SAB's partnership in four breweries in China with a total brewing capacity of over 5 million hectolitres per annum.

The latest acquisition is in line with SAB's growth strategy to develop regional focal areas in preference to a national drive in a country the size of China, which produces some 150 million hectolitres of beer annually.

Sichuan province is located in the central region of the country and has a population of 100 million people.

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