Qianlifeng Water Plant Expansion
Sydney, May 11, 2017 AEST (ABN Newswire) - Tianmei Beverage Group Corporation Limited (
ASX:TB8) ("Tianmei" or the "Company") has secured its own water supply source following completion of the acquisition of Qianlifeng Water Plant ("Qianlifeng") in February 2017. The acquisition not only serves to significantly mitigate water supply risks, but also sets the platform for further development and to meet increasing demand for Tianmei's product line of bottled drinking water.
- Secured high quality water supply source following acquisition of Qianlifeng Water Plant ("Qianlifeng") in February 2017
- Qianlifeng expansion underway to meet increasing demand for Tianmei's product line of bottled drinking water
- Targeting completion of Qianlifeng plant expansion within 12 months
- Installation of new fully automated production and bottling facility will commence post completion of expansion works to increase annual drinking water production capacity from 35.47 million litres to 98.55 million litres
Following extensive planning and site selection process, the Company is pleased to announce the expansion of Qianlifeng. The expansion will take place at a new 17,800m2 site located in close proximity to the existing Qianlifeng plant. It is estimated that the construction works will complete within 12 months with a total investment capital of approximately $3.9 million, funded by internally generated cashflow.
The existing plant utilises a semi-automatic production facility with a production capacity of approximately 35.47 million litres per annum of drinking water. Upon completion of construction works at the new site, Tianmei will introduce two new state of the art production and bottling lines to increase production capacity to 98.55 million litres of high quality drinking water.
As the production base of drinking water for Tianmei, the water source of Qianlifeng is abundant and with stable flows. The water has a unique hydrochemical composition with low sodium and mineralisation but is rich in selenium and strontium and other trace elements beneficial to the human body. This water source allows Tianmei to target various market segments of premium drinking water, including the infant market with its Infant Bottled Water. Tianmei's products are fully compliant with the National Food Hygiene Standards for high quality drinking water.
The Company will update shareholders progressively on the expansion of Qianlifeng.
About Tianmei Beverage Group Corporation Limited
Tianmei Beverage Group Corporation Limited (ASX:TB8) provides promotional services to producers of FMCG goods as well as its own water products in the Guangdong province in China. Guangdong province is one of China's most developed provinces with a gross domestic product of US$1.1 trillion in 2014 and has as its capital, Guangzhou city, which is China's third largest city with a population of approximately 13 million people.
Product Promotion
Tianmei have contracts with over 940 terminal supermarkets and convenience stores in Guangdong. Through this network of stores, the Company promotes fast moving consumer goods, including food, beverage and general grocery products for over 65 FMCG suppliers.
Water Products
The Company's water products business focuses on the sale of Tianmei-branded water products, including bottled water, infant water and water dispensers through a network of over 500 retail outlets. The Company have a number of patents approved and pending surrounding it's water products and production equipment.
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