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Grape expansion: Chinese wine companies move west

  • Staff Reporter
  • 2011-12-15
  • 10:57 (GMT+8)
A Ningxia vineyard. The plan to make Ningxia a wine region has attracted international and domestic wine companies. (Photo/Xinhua)

A Ningxia vineyard. The plan to make Ningxia a wine region has attracted international and domestic wine companies. (Photo/Xinhua)

Major Chinese wine companies have begun a westward expansion by investing in the vineyards of Ningxia, a move that has been followed by leading oil company China Petroleum and Chemical Corporation with its foundation of a grape plantation near the Helan Mountains.

Wine companies Changyu, Dynasty Wine, and China National Cereals, Oils and Foodstuffs have all invested in vineyards in the western region of Ningxia, and now the oil company is looking to get in the game.

The eastern base of the Helan Mountains has been approved as a conservation area suitable for wine production by the General Administration of Quality Supervision, Inspection and Quarantine.

Dynasty Wine has invested 100 million yuan (US$15.7 million) in a Helan Mountain vineyard, in a partnership with local Yuma Winery. Together, they own 20,000 acres of plantation land. Wine corporation Changyu has also set up an 8,000-acre plantation with the help of Ningxia Agriculture.

The plan to make the northwestern Ningxia Hui autonomous region known for its wine has attracted international and domestic wine companies. This year, Midea also joined Ningxia's wine industry.

References

Changyu 张裕

Dynasty Wine 王朝酒業集團

China National Cereals 中粮集团有限公司

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