SABMILLER Plc, the world's second-biggest beermaker, said yesterday it will acquire a plant in Fujian Province to expand into southern China, continuing an acquisition wave by foreign brewers in the world's fastest-growing beer market.

China Resources Snow Breweries Ltd, a joint venture between SABMiller and a subsidiary of China Resources Enterprise Ltd, said it has bought an 85 percent stake in Quanzhou Qingyuan Brewery Ltd for 72 million yuan (US$9 million).

The remaining stake in the firm will be held by Quanzhou Zhongqiao Group Ltd, a state-owned company.

The annual production capacity of the acquired brewery is 1.2 million hectoliters and could be increased to 2.8 million after an upgrade in two to three years for an additional investment of 65 million yuan, SABMiller said in a statement.

The major product line for Qingyuan Brewery is its Qingyuan beer brand, distributed for sale mainly in the Quanzhou area.

The move gives SABMiller its first plant in Fujian, the nation's fourth-wealthiest province.

Fujian recorded total beer sales of 13.5 million hectoliters and annual consumption per capita of 39 liters in 2004, exceeding the national average of 23 liters.

Major foreign beer brewers continued to consolidate their presence in China's highly segmented beer market in the past two years.

Two weeks ago, Belgian brewer InBev SA acquired Fujian Sedrin Brewery Co Ltd, the largest brewer in Fujian Province, for 5.886 billion yuan, marking the biggest acquisition so far in the domestic beer market.

US-based Anheuser-Busch bought Harbin Brewery for 5 billion yuan in 2004 to gain a foothold in north China.

AB has also acquired a 27 percent stake in Tsingtao Brewery Co, China's biggest beermaker.

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