Carlsberg builds new brewery in Southwest China

A ground breaking ceremony was held in the city of Dali, Southwest China's?Yunnan province on Oct 12?to mark an important milestone for the strategic partnership between the Carlsberg Group and the provincial government of Yunan, which will set up a 10 million-hectolitre (hl) greenfield brewery in Dali FengyiInnovation Industrial Park.

Present at the ceremony were Mr Friis Arne Petersen,Danish ambassador to China, Mr He Hua, governor of Dali Bai autonomous prefecture of Yunnan province, Mr Cheng Yunchuan, deputy governor of Dali Bai autonomous prefecture of Yunnan province, and distinguish guests from provincial government of Yunnan, Dali prefecture and municipal Government, Mr He Yong, Vice Secretary-General of China Alcoholic and drinks association, senior management of Carlsberg Asia, Carlsberg China and Dali brewery Co Ltd.

The strategic partnership agreement was initiated by China and the Danish Government following the visit of Hu Jintao, former president of the People's Republic of China in June 2012. Under the agreement, the Carlsberg Group is expected to achieve an annual capacity of 16 million hl by 2015, with total investment of 5 billion yuan.

"Dali is the central city in western Yunnan and is strategically located in the heart of key industrial parks in the province, offering great potential and abundant opportunities for the development of industrial economies in Yunan. As a leading brewer in the world, Carlsbergbrings in expertise and sets a solid foundation to building the new brewery with capacity of 10 million hl in Dali city. The greenfield will set it apart from the industry players not only in city and provincial level, but also among the Southwest China. It also echoes the five-year strategic focus of Yunan province to further accelerate growth in the region." said He Hua, governor of Dali Bai autonomous prefecture of Yunnan province.

Tang Shuhao, VP of Supply chain, Carlsberg China commented, "The new brewery has a clean, contemporary style with a local cultural touch in its color tone and design details. The new plant embraces world class technology and international standards to ensure that its infrastructure development and brewing production live up to the green commitment in energy saving, reduction of CO2 emission and low carbon footprint. We strive to offer our consumer top quality of beer while preserving the environment and nature."

Stephen Maher, CEO of Carlsberg China remarked, "The new greenfield brewery in Dali will set the bar high for China and around the world. It further cements our position as market leader in the western China, supporting us to realize our ambition to be the fastest growing brewer in China. The partnership also demonstrates our determination and commitment to fostering closer collaboration with local market and the community. The 10 million hl facility is a stepping stone towards sustainable development in China, and we are well placed to capture our share of the future growth in Asia and around the world."

The new brewery is 40.86 hectares and will be operational in 2015. The second phase of construction is scheduled to start in 2019. Upon completion, the greenfield will increase the production capacity of local power brands Dali Beer and Feng Hua Xue Yue Beer, which paves the way to support the brewer’s market development initiatives and drive the sales network expansion. This will also empower local production of Carlsberg’s international brands, such as the flagship Carlsberg brands and Tuborg, which will support the Carlsberg Group to cater to the growing consumption demand for premium products, and to intensify its premiumisation agenda in China. In addition, the Carlsberg Group will continue to provide high quality products in China, with various cultural activities in order to enhance the quality of life. With the concerted efforts of local authority and partners, Carlsberg group will live up to the commitment to sustainable development of business and contribution to local community.