China’s investment in Australian vineyards
Weilong Grape Wine Company, China’s third largest wine company, has targeted Australian vineyards for investment.
Weilong has told the Shanghai Stock Exchange it’s invested $120 million across Australia snapping up land and processing facilities.
The company said it had purchased 484 hectares of vineyards in Australia and there was a further 605 hectares that could be developed.
As part of its investment, it has purchased vineyards around Mildura and Swan Hill in Victoria and in NSW for $13.4 million.
The wine making facility in Mildura will have the capacity to process 60,000 tonnes of grapes annually.
The wine produced at these facilities will be for the China market, using the company’s distribution network.
Australian wine is popular with Chinese consumers and ranks only behind France in the amount that’s exported to China, creating more business for Treasury Wine Estates, maker of the Penfolds and Wolf Blass labels.
“This new plant in Australia will satisfy demand from Chinese consumers for higher quality wine,” the company said in a statement.
by Leon Gettler, September 23rd 2016
