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China Huiyuan Juice Group Ltd said it has agreed to buy Jiangsu Huiyuan Food & Beverage Co for 109.60 million yuan in order to boost its production of fruit and vegetable juice.

The company said in a statement it agreed to buy a 75 percent stake in Jiangsu Huiyuan for 82.2 million yuan from Beijing Huiyuan Beverage & Food Group, a company owned by China Huiyuan's chairman Zhu Xinli.

China Huiyuan also entered into an agreement with a Hong Kong company, Keen Fast Ltd, to buy the remaining 25 percent stake in the beverage company for 27.40 million yuan.

Jiangsu Huiyuan makes fruit puree and bottled milk. But, China Huiyuan plans to convert Jiangsu Huiyuan's facilities for the production of fruit and vegetable juice with a capacity of 100,000 tons.

The company plans to have the facilities up and running by August, it added.

(US$1 = HK$7.8)