Diageo, the alcoholic beverages giant, said on Friday it planned to overhaul its Guinness operations in Ireland to cut costs and boost production of its distinctive black stout.
Diageo, the world's biggest maker of alcoholic drinks, said it would close two breweries and renovate its famous St. James's Gate brewery in the centre of Dublin -- where Guinness has been made for the past 250 years.
In addition, the company said it would open a new "multi-product brewery" close to Dublin.
The St. James's Gate revamp would cost 520 million pounds (670 million euros, 1.04 billion dollars).
"Diageo has today announced a proposal to create world-class brewing facilities in Ireland over the next five years to support the growth and development of Diageo's global beer business," the firm said.
It added: "The renovated St. James's Gate brewery will brew Guinness primarily for the Irish and British markets and the new brewery will produce Guinness to meet growing export demand and ales and lagers for the Irish market."
The proposed restructuring, which followed a review of Diageo's Irish operations, would include the closure of two smaller breweries at Kilkenny and Dundalk.
Production there was expected to transfer to the new sites in 2013, with the loss of 250 jobs, the company said.
The overall changes would also involve the release of surplus land, between 2013 and 2015, on parts of the St James's Gate site, as well as in Kilkenny and Dundalk, with a combined estimated value of about 400 million pounds.
"Over the last twelve months we have conducted a rigorous review of our brewing operations in Ireland," Diageo chief executive Paul Walsh said in the statement.
"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 Guinness Storehouse museum, one of Ireland's most popular tourist attractions, would continue to be based at St James's Gate.
Copyright 2008, by
AFP
. All rights reserved
Microsoft appeals against record EU anti-trust...
Former Siemens chief will not face penal charges:... 