Tsingtao Brewery Group

singtao Thirsty for Home Market

The Tsingtao Brewery Group is reaching out from its base in Qingdao of East China's Shandong Province, to extend its firm hold on the beer market to the entire country.

It devoured 27 brewery companies in 10 provinces over the last few years.

Two other beer companies in Beijing were added to the list of Tsingtao's conquests on Friday, on the heels of its recent acquisition of 75 per cent of shares for a Carlsburg beer factory in Shanghai at about 150 million (US$18.1 million).

The two newest acquisitions are the Asia Shuang He Sheng Five Star Beer Co Ltd and the Three Ring Asia Pacific Beer Co Ltd.

Reports said Tsingtao signed an acquisition agreement on Friday with the Asia Strategic Investment Corp (ASIMCO), which holds a 63 per cent stake in Five Star and a 53 per cent share of Three Ring.

The new acquisitions will add 400,000 tons annual production capacity to Tsingtao's existing 1.1 million tons and drag the company a step closer to its target of becoming the world's second largest beer company with annual production capacity of 8 million tons.

ASIMCO, an international investment fund, is said to have spent tens of millions of US dollars for the purchase and upgrade of the two beer companies since 1995.

Business insiders said the two beer companies are Tsingtao's largest acquisition.

But Tsingtao officials refused to disclose how much it has to pay for the companies.

A spokesman with ASIMCO said the corporation has decided to pull completely out of the beer industry and concentrate on its auto parts business in China.

It's not the first time for Tsingtao