China's leading liquor producer, Kweichow Moutai, said Friday it will increase its annual production of base liquor by 20,000 tons over the coming five years.

Based in southwest China's Guizhou Province, the company will invest 686.9 million yuan (about 102.9 million U.S. dollars) to boost output almost 87 percent over its 2009 output level.

Known as the maker of "China's national liquor," the company produced 23,000 tons of base liquor in 2009.

Kweichou Moutai is an important taxpayer for the Guizhou provincial government, which has spent more than 3 billion yuan (439 million U.S. dollars) to protect the Chishui River, the water source for Kweichow Moutai.

Other measures the provincial government has taken to protect the environment include the relocation of 10,000 residents and the closure of 400 liquor workshops.