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Kweichow Moutai plans $212m expansion project

(Agencies)
Updated: 2008-12-04 17:09

Kweichow Moutai Co, one of China's top makers of traditional Chinese liquor, said on Thursday that it planned to spend about 1.46 billion yuan ($212 million) in the next year to boost its annual production capacity by 2,000 tonnes.

The expansion project includes building 10 workshops with an annual production capacity of 200 tonnes of the spirit each, and several related facilities such as warehouses and official buildings, the company said in a statement.

The company said it expected the expanded production of the Moutai drink, served at Chinese state banquets, would contribute sales revenues of 1.27 billion yuan a year and a total pre-tax profit of 585 million yuan.

The company said in a separate statement that it would finance the project without raising funds from the public markets. Its current annual production has exceeded 10,000 tonnes, according to the company's website.