It is predicted that the new plant will be able to generate 12 million hectolitres of beer yearly.
Observers claim that the country's beer market is growing at 10 per cent a year. In the last year the country has increased production to 166.4m hectolitres from 149.8m in 2002.
Research indicates that consumers in Eastern Europe and Russia are opting to drink beer instead of traditional spirits. This has meant that the BBH sector of S&N's business has become more important.
In January S&N launched Fosters and Kronenberg 1664 in Russia, two of its most popular premium beers in an attempt to tap into the developing sector.
The UK company has enjoyed success in Russia since it acquired BBH two years ago. The investment has rapidly increased the company's turnover and has helped its position in Eastern Europe.
Last year the brewer reported that the group's turnover for the six months to October 2003 had increased 17 per cent to over £3bn, while profits had increased 16 per cent to £510 million. The new plant will be the third BBH brewery in the Ukraine.