Establishment of joint venture in Anhui Province, PRC
29 January 2001
South African Breweries plc, through its Chinese joint venture company, CRE Beverage Ltd (“CREB”), has established a company, China Resources (Anhui) Brewery Co Ltd, in Anhui province in Central China. Anhui province is home to some 63 million people.
The company has effectively acquired the brewing assets and brands of three breweries situated in Bengbu and Hefei, the provincial capital of Anhui province.
The three breweries have a combined capacity of 3.8 million hectolitres. Further investment will be made through refurbishment and expansion, with a total cost of investment to CREB, of some US$ 67 million. Part of this will be funded by way of third party debt and the balance by shareholders funds. SAB’s contribution to the shareholder funding amounts to approximately US$15 million.
The investment is in line with CREB’s low capital entry cost expansion strategy and brings its total number of breweries in China to 11, with a combined total capacity of 17 million hectolitres.
SAB – Telephone +44 20 7659 0100
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Graham Mackay, Chief Executive
Malcolm Wyman, Corporate Finance Director
Salomé Brown Corporate Communications
Anna Miller Head of Investor Relations
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