3/5/1999 8:10 

Carlsberg Brewery Hong Kong Ltd. (CBHK) today announced plans to cease production in Hong Kong on 30 April 1999. CBHK will continue to serve the Hong Kong market with products sourced from other Carlsberg breweries in the region.

Stressing its continued commitment to serving the Hong Kong beer market, the company said the transfer of production to other breweries will have no effect on other areas of its operations, including some 250 staff employed in marketing, sales and distribution activities. 73 local staff are affected by the above changes.

"Beer is a popular beverage in Hong Kong and Carlsberg enjoys strong recognition among the wide variety of brands competing in the market," said Geoff Cundle, General Manager of CBHK.

"Rising costs in Hong Kong, new capacity elsewhere in the region and highly competitive freight rates mean it is more attractive to source Carlsberg beer form outside Hong Kong," said Geoff Cundle.

Carlsberg Brewery Hong Kong Limited has around 1,200 employees. Besides its activities in Hong Kong, it has two breweries in China - Huizhou and Shanghai. The brewery in Shanghai started production in 1998.