Danish brewer Carlsberg launched a $75m brewery in Myanmar that will have a production capacity of 60 million litres per annum.

The facility was opened as a joint venture with food and beverages company Myanmar Golden Star Group. Carlsberg will own 51% of the shares in the venture.

The company will produced the Carlsberg, Tuborg and Yoma brands at the facility.

The facility will be located in Bago, 80 km northeast of the country’s commercial capital Yangon.

Carlsberg said that the facility will focus on producing beer for the domestic market in the major cities of the country, with the Yoma brand targeted at Myanmarese consumers.

Myanmar’s legal beer market according to research by Euromonitor International was 172 million litres in 2013, as reported by Deal Street Asia.

Meanwhile, the company also announced that owing to a drop in demand in Eastern Europe, it will introduce cost cutting at its headquarters in Denmark.

The political instability and economic turmoil in Russia has affected Carlsberg’s business as it is the biggest brewer in the country.

Carlsberg CEO Joergen Buhl Rasmussen recently said in the results statement: "We are starting to roll out major internal initiatives that will make the group even more efficient, agile and responsive and contribute to improved profits and returns."

The brewer also said in a statement that it will be divesting 70% of its stake in its subsidiary Luen Heng F&B to Capriwood for RM19.5m ($5.45m).