PEPSICO further expanded its operations in China yesterday by signing a joint-venture agreement worth US$20 million to produce its soft drinks in the northern city of Changchun.

Pepsi has taken a 50 per cent stake in Changchun Pepsi-Cola Beverage Co, with Changchun Number Two Food Factory and Beijing Chong Yin Industry and Trade Co dividing the remaining interest between them.

Pepsi, which has 13 joint-venture operations in China and worldwide sales of nearly $25 billion, plans to use the new factory to penetrate the market in the northeastern provinces of Heilongjiang, Liaoning and Jilin.