Diageo planning new brewery in Ireland

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On Friday the brewer said it planned to invest £520 million between 2009 and 2013 to renovate the ST James's Gate brewery and to build a new multi-product brewery near Dublin.

Diageo said it would also be closing two of its smaller breweries at Kilkenny and Dundalk. Overall, land released from closing Kilkenny and Dundalk and parts of the St. James's Gate site is expected to be worth £400 million.

The renovated St. James's Gate brewery is to brew Guinness primarily for the UK and Irish markets, whilst the new brewery will manufacture Guinness for export and ale and lager for the Irish market.

Diageo said that once the new brewery is completed in 2013 around 250 jobs would be lost as a result.

Paul Walsh, chief executive of Diageo, said, "Over the last twelve 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."