The Vienna-headquartered firm said yesterday that its stake in Xianyang Andre Juice Co, a subsidiary of Hong Kong-listed Yantai North Andre Juice Company, would allow the company to "step up the pace" of exports to North America, as well as strengthening its position in Europe's sweet apple juice concentrates market.

Since April 2003, Agrana has bought three European fruit juice or fruit preparation makers and acquired interests in a further two. It is seeking to improve on opportunities for growth as profits from sugar fall in the wake of European reforms.

Part of the investment in Xianyang Andre Juice will be used to finance expansion of an existing factory with annual capacity of 30,000 tonnes. Output will double in 2007 under the new joint-venture business, with expected revenues of about €24 million.

Chief executive Johann Marihart called the acquisition in China "a milestone in the ongoing development of our fruit division".

China is the world's largest producer of apple juice concentrates, making between 500,000 to 600,000 tonnes a year, depending on the harvest. Around 80-85 per cent of production is exported. Because it lacks the acidity that is typical of European concentrates, Chinese apple juice is classified as 'sweet'.

The new joint venture factory is located in China's largest apple growing area in Shaanxi province.

The joint venture company started production of apple juice concentrate in 2005, making some 12,000 tonnes of apple juice concentrates between August and December that year.

Yantai North Andre has five additional concentrate production facilities of its own and is also building up pectin production. It made sales of approximately €66 million during 2005.

The joint venture agreement still needs approval from the relevant authorities.