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16/04/2004
Diageo to axe 90 jobs on London brewery closure
Around 90 jobs are to be lost in London after drinks giant Diageo announced it will no longer brew Guinness in the capital.
The company said it would be closing its Park Royal brewery and transferring production from the UK, its largest market, to the St James's Gate site in Dublin.
Diageo blamed changing drinking habits in the UK for the decision. Sales have also shown a decline in the UK with volumes down 3% in the last six months of 2003 compared to the same period a year earlier.
Commenting on the news, Irish Minister for Enterprise Trade and Employment, Mary Harney said: "This is a very significant boost for the St James's Gate brewery and seriously deepens the already strong presence of Diageo in Ireland.
"I recently opened the new state-of-the-art production plant in Waterford that produces the essence of Guinness for global distribution. This €40 million investment by Diageo is further recognition of the capabilities within Diageo Ireland."
Diageo said it would increase the volume of Guinness produced in Dublin by 50% and invest a minimum of £15m ($27.7m) in the St James's Gate brewery.
It is understood that due to the increased production, transport and logistic operations to be put in place by Diageo there will be substantial benefits to the Irish economy.
(MB)
The company said it would be closing its Park Royal brewery and transferring production from the UK, its largest market, to the St James's Gate site in Dublin.
Diageo blamed changing drinking habits in the UK for the decision. Sales have also shown a decline in the UK with volumes down 3% in the last six months of 2003 compared to the same period a year earlier.
Commenting on the news, Irish Minister for Enterprise Trade and Employment, Mary Harney said: "This is a very significant boost for the St James's Gate brewery and seriously deepens the already strong presence of Diageo in Ireland.
"I recently opened the new state-of-the-art production plant in Waterford that produces the essence of Guinness for global distribution. This €40 million investment by Diageo is further recognition of the capabilities within Diageo Ireland."
Diageo said it would increase the volume of Guinness produced in Dublin by 50% and invest a minimum of £15m ($27.7m) in the St James's Gate brewery.
It is understood that due to the increased production, transport and logistic operations to be put in place by Diageo there will be substantial benefits to the Irish economy.
(MB)
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