Kafelaku Coffee's (HKG:1869) subsidiary Jiangsu Kafelaku Holding agreed to engage Jiangsu Xuncai Construction Engineering as the contractor for the construction of the group's production base in Jiangsu Province, China, for 66.1 million yuan, a Friday Hong Kong bourse filing said.

The production base, with a gross floor area of 26,614 square meters, will include a workshop, an integrated building, a solid waste storage warehouse, and other ancillary facilities related to the processing of coffee beans for the group's coffee shops and coffee trading business.

The construction period is expected to be 120 days from the day of commencement of the construction works.