Tuesday, May 13, 2008    Weather: weather icon Hi: 17°C / Lw: 10°C

Business


Guinness owners to invest in new Dublin brewery, close two other sites

Friday, May 09, 2008

The company that owns Guinness has announced plans to lay off 250 workers as part of a restructuring of its Irish operations. Diageo also announced plans to invest £514.7m in its Irish beer business.

Despite speculation about a possible closure, the company says the famous St James' Gate brewery in Dublin will be upgraded and consolidated. It will produce Guinness primarily for the Irish and British markets.

The opening of the Dublin brewery will signal the closure of the company’s sites in Kilkenny and Dundalk. Diageo said affected employees will be offered relocation opportunities where possible.

Diageo chief executive Paul Walsh said: “Over the last 12 months we have conducted a rigorous review of our brewing operations in Ireland.

“It examined many options and I believe it has identified the right formula for the long-term success of our business in Ireland and for the continued global success of the Guinness brand.

“Our ambition is to combine the most modern brewing standards with almost 300 years of brewing tradition, craft and heritage.”

The Republic's minister for enterprise, trade and tmployment, Mary Coughlan, said: “This is a major investment that secures the future of brewing in Ireland. I welcome the company’s intention to retain and upgrade the St James’s Gate brewery which is of great historic significance to Dublin."

Ms Coughlan also acknowledged the recognition by Diageo that on completion of the project in 2013 there will be a net reduction employment.

“While this is five years away it is very important that the impact on employment is minimised and my Department will work closely with the company to secure the best possible outcome.”

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