The expansion plans include 10 new workshops and several warehouses with a total production capacity of 2,000 tonnes, Kweichow Moutai said in a statement filed to the Shanghai Stock Exchange.

Construction is scheduled to start next month and be completed by December 2009. The Guizhou province-based liquor maker currently has an annual capacity of 12,000 tonnes, according to the company website.

The increased output should boost the company's sales by 1.27 billion yuan (S$282.5 million) and profit including tax by 585 million yuan per year, the statement said.

The liquor maker said it would finance most of the investment itself.

Crowned as China's national wine, Moutai has been appointed as a state banquet staple for feasts with foreign heads of state and distinguished visitors.

Its international prominence grew when Premier Zhou Enlai presented the liquor to entertain Richard Nixon at the state banquet during the US presidential visit to China in 1972.

It is an extremely strong clear spirit distilled from sorghum, and branded after the town of the same name in south-western China's Guizhou province. -- AFP