SAB Miller and Coca-Cola Amatil (CCA) are to build a new brewery in Australia by 2010.
The 500,000-capacity brewery will be built in the central coast region of New South Wales - about 100km from Sydney.
The announcement follows the acquisition of Australian brewer Bluetongue Brewery by Pacific Beverage, the 50:50 joint venture between SAB Miller and CCA.
The new brewery will allow the company to increase production of the Bluetongue and Bondi brands while giving the potential to brew other premium brands.
The aim is to make the brewery the most water-efficient in the world.
"A local brewing facility will give us the option to expand our portfolio and to continue providing consumers with top quality products," said SAB Miller managing director of Asia Ari Mervis.
Terry Davis, group managing director of CCA, added: "We are looking forward to building a state-of-the-art facility with our partners SABMiller, who, as one of the world's largest brewers, will bring great brewing technology and expertise to our Australian market."