TSINGTAO Brewery Co (stock code:600600), part-owned by Anheuser-Busch Cos, said its sales will grow by at least 20 percent annually within the next five years as it increases spending to build new plants.

The biggest Chinese brewer will focus on the construction of additional production lines within the next three to five years to sustain its revenue growth, Chairman Li Guirong said in an interview with Bloomberg News yesterday in the eastern port city of Qingdao, Shandong Province.

Rising affluence in the world's biggest beer market spurred a 16-percent surge in sales last year, with consumption forecast by Anheuser-Busch to double within a decade. Tsingtao Brewery, responsible for more than half of China's beer exports, is increasing marketing of premium products, including a low-alcohol brand, through sponsoring next year's Beijing Olympic Games.

The company will add additional production capacity of more than one million tons by the start of next year by building new plants in Shandong, Sichuan and Shaanxi provinces, Li said.

"Our development will depend primarily on the domestic market due to the strong local demands."

Tsingtao Brewery now has 50 plants in 20 provinces across the nation, Chu Liangjing, vice general manager of the brewer's international unit, said in a separate interview. The company produced 4.5 million tons of beer in last year, compared with 2.5 million tons in 2001. Tsingtao Brewery aims to increase sales of its profitable Tsingtao brand by 17 percent this year.