China: Zhujiang Brewing Group invests in new technology

Guangzhou Zhujiang Brewery Group Co., Ltd., being known to the country for its technical innovation, has recently announced that during the period between March 1st, 2006 and March 1st, 2008, the group would invest hundreds of millions Yuan in its subordinate Zhujiang Beer State-level Technical Center for independent innovation and technical development, China Economic posted May 25.

Such a significant decision plus The Declaration of Independent Innovation jointly initiated by the group and China Brewing Industry Association have attracted wide concerns from the society.

The production and sales volume of Zhujiang Brewing Group broke through 1.22 million tons in 2005 with it's a pre-tax profit of RMB900 million and a profit of RMB300 million. The sales revenue of new products represented 35.84 percent of the total revenue, and the profits represented 37.34 percent of the total profits on sale.

Although the production volume of Zhujiang Brewing Group occupied only 3.6 percent of the total output of China in 2005, its profits accounted for 10 percent of the total profits of China's beer industry.

In recent years, Zhujiang Brewing Group has always been attaching great importance to independent technical innovation. It established a state-level technical center, and pro-actively launched scientific research projects at state-level, including Research on the Application of Compound Syrup in Brewing Process, Research on the Production Technology of Draft Beer, and Enterprise Resource Planning Project, etc. The group has independently researched and developed a series of new products with high technology content like Zhujiang draft beer, Zhujiang white beer, Zhujiang ALE beer and Zhujiang non alcoholic beer, etc.

According to Fang Guiquan, president and general manager of Zhujiang Brewing Group, the substantial contract signed between the group and its subordinate Zhujiang Beer State-level Technical Center is aimed at further perfecting the technical innovation system of the group, further improving its independent innovation capability, and making sure that the contribution to economic growth made by technical advancement to exceed 40 percent in the next three years, 50 percent by the year of 2008. The contract stipulated that Zhujiang Beer Technical Center must complete not less than 40 technical development projects before the contract expires, including not less than more than state-level projects, ten more provincial-level projects. All of the projects should achieve internationally advanced and domestically leading level. According to the contract, Zhujiang Beer Technical Center should establish the first post-doctor scientific research work station in China's beer industry, introduce not less than ten doctors or talents with senior professional titles, obtain more than 30 authorized patents, and cultivate not less than 40 leading scholars for the group; Zhangjiang Beer Technical Center should also foster no less 40 in-service postgraduates, not less than 40 senior brewing technicians and 30 beer tasters.

In the recently held Independent Innovation Meeting of Zhujiang Brewing Group, the group signed technical cooperation agreements with Belgian InBev Group, the biggest brewing group in the world, and China National Research Institute of Food and Fermentation Industry respectively. Zhujiang Brewing Group will take advantage of domestic and overseas resources to improve its independent innovation capabilities and consolidate its leading position of technology in China's beer industry.

Meanwhile, according to the arrangements of the technical cooperation agreements, Zhujiang Brewing Group will join the technical circle of InBev Group and share its technical resources. InBev Group will dispatch beer technical experts or microbial experts to Zhujiang Brewing Group periodically for communication, discussion or training on special subjects; InBev will also provide full-direction trainings including scientific research management, quality management, beer production technology, checking technology, marketing management and so on to Zhujing Brewing Group, thus improving its independent innovation capabilities.

China National Research Institute of Food and Fermentation Industry, on the other hand, will provide overall technical support to Zhujiang Brewing Group on its scientific research work in the beer field. The institute should cooperate with the group to conduct not less than one key state-level scientific research project every year, hold trainings or lectures on beer technologies, and cultivate more than 5 leading scholars in the beer field for the group.

Wang Yancai, chairman of China Brewing Industry Association, told the reporter in the interview that Zhujiang Brewing Group is one of the enterprises that care the most about technical innovation in China's brewing industry, and it had invested RMB482 million in the development of new technology from 2000 to 2005. "This time, Zhujiang Brewing Group has put large amount of money and put independent innovation into effect as a kind of legal responsibility by the means of signing contract, taking the initiative in China's beer industry."

In September 2002, Zhujiang Beer was entitled Chinese famous product. In 2002, Zhujiang Beer Technical Center was confirmed as a state-level technical center. It became No 1 of China beer industry and the first enterprise in Guangdong Province that had completely passed cleaner production check in August 2003.

In 2004, the development of pure draft bottled beer won the second award of science and technology of Guangdong Province and the first award of science and technology of Guangzhou City. All of the 31 varieties declared by Zhujiang Brewing Group passed through authentication of China Green Food Development Center and was officially confirmed as green food in July 2004.

In November 2004, the brand of Zhujiang Beer was confirmed as the national famous brand. Zhujiang Brewing Group was awarded as "State-level Environmental-friendly Enterprise" in October 2005. In January 2006, Zhujiang Beer acquired the certificate of "China Alcoholic Drinks Quality Certification".

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