China. Tsingtao building brewery in Jimo for $33 mln, while Carlsberg closes a plant in Bozhou.

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On May 24, 2016, at a board meeting an elective resolution was taken to close Chongqing Brewery Bozhou Co., Ltd in Anhui, with a production capacity of 40 mln liters of beer per year.

Closing the brewery in Anhui province fully complies with the optimization policy which was agreed upon at Chongqing Brewery Co., Ltd board meeting on 27 November, 2015.

The official statement says that the closure results from the gradual sales dwindling of Chongqing Brewery in Bozhou. The demand for the production in the province has fallen down, and the output of low-margin products does not yield sufficient profit, while the marking is increasingly refocusing on high-end products.

As of 31 December, 2015, sales revenue amounted to 52.71 mln yuan and sales totaled 27.3 mln liters.

While Carlsberg closes its plants, Tsingtao is investing $33 mln into construction of a new brewery in East Industrial Park Road 179, Jimo district.

The brewery construction is to start in June 2016 and the production launch is planned for February 2017.

The prospected capacity of Ruifeng century (Qingdao) Co., 30 mln liters of beer per year.

The construction site will occupy 27,000 square meters. The complex itself will encompass the malt stand, brewhouse, fermentation workshop, packaging workshop, distribution systems, heating systems, compressed air systems, cooling systems, and R&D center as well as other ancillary facilities.