Changyu Acquires Raw Wine Source in Xinjiang

Yantai Changyu Pioneer Wine Company Limited (SZSE: 000869), a liquor maker in China, purchased the majority stake in raw wine maker Tianzhu Liquor for CNY 100 million at the end of this past November, building up its presence in China's western Xinjiang Autonomous Region.
Such a move by Chnagyu cuts off the raw wine source for its rivals such as Great Wall and Yantai Weilong Grape Wine.

Founded in 2006, Tianzhu Liquor has a registered capital of CNY 20 million. Last year it signed 20-year wine grape purchase agreements with several farms. It is capable of processing and fermenting 50,000 tons of grape and rolling out 35,000 tons of raw wine each year. It is one of the biggest raw wine makers in China.

As the arable vineyard in the city of Yantai, where Changyu is headquartered in, is shrinking, the company has lately been heading toward China's western areas.

Now Changyu is holding 60% of Tianzhu Liquor. Xi Jiwu, chairman at Tianzhu Liquor holds 32%, and the 8% for the Xinjiang Production and Construction Army Corp.