Canada based brewery Brick Brewing is planning to invest $4m in the expansion of its brewery in Kitchener, Ontario.

The investment will be utilised to increase production at the Kitchener brewery, as well as to improve blending, packaging and warehousing capabilities.

Upon completion of the project, the firm plans to cease its Formosa operations.

"We are hopeful that a buyer will emerge for Formosa in the months ahead."

The move is a part of Brick's strategy to boost manufacturing efficiency and competitiveness by consolidating operations to a single site.

The upgrade of the Kitchener facility will enable Brick to carry out all activities, which are currently split between Formosa and Kitchener, at the Kitchener facility.

Brick Brewing president and chief executive officer George Croft said: "We are hopeful that a buyer will emerge for Formosa in the months ahead.

"Given that the Formosa site began producing beer in 1870, it would be wonderful to see a new owner continue that rich history of brewing."

The Kitchener expansion is expected to be completed by this July, while the plan to cease operations at Formosa is expected to finish by September.

Brick secured funding of $1.75m from a co-pack customer, in addition to an extension to the current production contract until 31 December 2022.

It is expected that post completion of the expansion, the firm will realise an annual recurring savings of at least $0.6m per year and the proceeds obtained from Formosa sale will also be utilised to fund the expansion project.