Business / Companies

Kweichow Moutai beer arm gets China Resources boost

By Wang Wen ( Updated: 2014-01-09 15:20

China Resources Snow Breweries will invest 270 million yuan ($44.631 million) into the reorganization of Kweichow Moutai Group's beer subsidiary, which it has been running since Jan 1, Xinhua News Agency reported.

Kweichow Moutai Beer Co Ltd with a 100,000-ton annual capacity, has been running at a loss for 13 years with annual production not exceeding 40,000 tons yearly.

Snow Breweries will invest over 50 million yuan into a technology upgrade and hopes to achieve profitability this year, according to the agreement between the parties.

The trustee also plans to upgrade the beer manufacturer's annual capacity to 400,000 tons in five years.

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