SANTIAGO, May 20 (Reuters) - Chilean authorities On Tuesday rejected plans by the nation's largest beer brewer Compania Cervecerias Unidas to build a $300 million plant on the outskirts of capital Santiago due to concerns about its impact on the environment and local community.
CCU, which is controlled by Dutch brewer Heineken and Chile's Luksic family, responded to the decision by saying it would "study the scope of the measure and evaluate how to move forward, with the conviction that the project in question does not pose a threat to the environment."
The project envisages the plant being built in stages with construction completed by 2032. Once finished, it would boost CCU's annual production capacity by 3 million hectoliters of beer and 12 million hectoliters of carbonated beverages.
The company known for its Escudo and Cristal beer brands has operations in Chile, Argentina and Uruguay, and recently entered the Paraguayan market. (Reporting by Anthony Esposito; editing by Andrew Hay)