Diageo announces €650 million investment in Irish brewery

Source: Food and Drink Digital

Date :09/05/2008 12:04:52

Diageo Plc has today announced its intention to invest €650 million (£520 million) in a brewing centre of excellence in Ireland.

Diageo’s investment is designed to support the growth and development of Ireland’s global beer business. The proposal would rejuvenate St. James’s Gate Brewery and the construction of a state-of-the-art brewery located close to Dublin.

‘A brewing hub’

Paul Walsh, Chief Executive of Diageo Plc, said, “This will be the single biggest capital investment made by Diageo in its supply infrastructure since the company’s creation ten years ago and will enhance the cost competitiveness of our global beer operations.”

Explaining the aim of the proposal, Mr. Walsh added, “Our ambition is to create a brewing hub, which will meet the highest standards of technology, efficiency and environmental management.”

Once the St. James’s Gate Brewery has been upgraded it will produce Guinness primarily for the Irish and British markets. When the programme is completed the brewery will be the second largest in the country.

Employment

The new brewery near Dublin when it is completed in 2013 will be Diageo’s biggest brewery and the largest in Ireland, producing Guinness to meet growing export demand.

Diageo anticipates a net reduction of approximately 250 employees, although the company will ensure that, where possible, affected employees are offered relocation opportunities.

The company will now engage in formal consultation with employees on the implementation of the proposal.

May 09, 2008