BBC News Online: Business

Chinese beer giant 'to invest in Taiwan'

Tsingtao was the first Chinese firm to list in Hong Kong

Tsingtao Brewery has built one of China's best known export brands and owns about 45 beer firms on the Chinese mainland.

Since China and Taiwan joined the World Trade Organisation (WTO) last year, barriers to Chinese firms investing in Taiwan - which Beijing views as a rebel province - have begun to be dismantled.

Tsingtao, which was founded by German investors in 1903, has a reputation for bold commercial strategy and was the first Chinese firm to list its shares in Hong Kong.

Now it plans to take advantage of the scrapping in January this year of Taiwan's alcohol production monopoly.

Thirst for profit

The first barrels of Tsingtao beer are scheduled to roll off the new production line in Pingtung by June next year.

Initially, the Pingtung plant will be able to brew 50,000 metric tonnes of beer a year, but there are plans to double output if the beer proves popular, the Commercial Times said.

Sanyo Whisbih will hold 60% of the joint venture.

In the six months to August 2001, Tsingtao's profits rose by an annual 38%, to 68.9m yuan (£5.7m; $8.3m), while sales nearly doubled to 2.4bn yuan.