GIMV Backs Chinese Brewery Joint Venture

GIMV, the Flanders-based private equity group, and Boortmalt, the largest independent maltster in Belgium, together have invested BFr 250 million (ecu 6.2 million) in a joint venture with a Chinese enterprise, Beijing Beer Material Factory. The joint venture company, Beijing Boortmalt Malting Company (BBMC), which produces malt for China’s brewing market, was launched in November.

The Chinese beer market is one of the fastest growing markets in the world.

Average per capita consumption, which in 1997 stood at 13 litres, is expected to reach 20 litres by 2002; this level of consumption, totalling almost a quarter of a billion hectolitres, would make China the largest beer market in the world.

Demand for malt, which is prohibitively expensive to import to China because it attracts duties of 30%, will increase in parallel with growth in the beer market.

GIMV and Boortmalt invested in BBMC through Boortmalt Overseas Group, a financing vehicle that holds a 55% share in the joint venture company. Boortmalt is the majority shareholder in Boortmalt Overseas Group with a 57.7% stake and GIMV owns the remaining 42.3%.