Sapporo reduces plants

- Last updated on GMT

Related tags: Japan

Sapporo Breweries Ltd has said it will integrate its production
operations into six breweries from the current eight to reduce
production costs.

Sapporo Breweries Ltd has said it will integrate its production operations into six breweries from the current eight to reduce production costs.

The company aims to raise the operating efficiency of its breweries amid slack demand for beer due to generally weak consumer spending.

Sapporo Breweries expects to cut production costs of Y5 billion (€43m) a year as a result of the planned production reorganisation.

The company said that will raise its brewery operating ratio to 94 per cent from the current 78 per cent.

The third-largest Japanese brewery will halt operations at its Sapporo brewery in Hokkaido, northern Japan, by the end of March and at its Saitama brewery, just north of Tokyo, after the summer of 2003, a Sapporo spokeswoman said.

The combined value of buildings and facilities at the two breweries is about Y16 billion.

Sapporo Breweries' total production capacity will fall to 1.16 million kilolitres from the current 1.40 million.

Related topics: Processing & Packaging

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