Yeo Hiap Seng says the group has agreed to acquire 25,000 sqm of land in Sanshui, Foshan, China, from Foshan Municipality Sanshui Central Technology District Xinan Industrial Park.

Yeo Hiap Seng plans to move its current manufacturing facilities in Guangzhou city to Sanshui as it has been notified by the Guangzhou authorities to cease manufacturing at its current premises by 2012. The new factory is expected to be operational by early 2012.

The company is in the process of incorporating a wholly-owned subsidiary known as Yeo Hiap Seng (Guangdong) Food & Beverage (YHS Guangdong) in China to hold this new investment.

The registered capital of YHS Guangdong will be US$2.4 million ($3.3 million) and will be funded by internal resources.