SINGAPORE: Asia Pacific Breweries (APB) is building a greenfield brewery in China's Guangdong province at a cost of S$120 million.

Its joint venture company Heineken-APB will oversee the project in the Huangpu District of Guangzhou City.

In a statement released on Thursday, APB said the greenfield brewery investment is in line with its China growth strategy.

The plant will expand the company's brewing capacity and help it expand in southern China and Hainan.

APB's current brewery in Hainan produces one million bottles of beer daily. Of these, a third goes to the southern Chinese cities of Guangzhou, Guangxi, Hunan, Fujian, Guizhou, Jiangxi and Yunnan, among others.

In recent years, APB's beer brands Tiger, Heineken and Anchor have made significant inroads into southern China.

The Pearl River Delta, including Guangzhou and its neighbouring cities, account for over 80 per cent of the 31-million-hectolitre Guangdong beer market.

APB said the project will be financed through a combination of external borrowings and internal funding. - CNA/ac