21 January 2009 Diageo plans in doubt

21 January 2009

Diageo brewery plans under review

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British drinks maker Diageo Plc has announced it will need to review its plans for the proposed £520 million investment in Leixlip, Ireland, amid continued economic pressure.

The investment, which was announced last May, would have included a new brewery outside Dublin - on the site of the original Guinness brewery founded in 1750 by Arthur Guinness.

"As result of the current difficult global economic situation, which affects both Ireland and the main international markets to be served by the new operations, Diageo has decided to conduct a re-evaluation of this brewing investment programme," said the company.

Diageo had planned to supply UK and Irish markets with Guinness from the original Dublin city centre site, while closing two smaller sites in Dundalk and Kilkenny by 2013 and cutting its Irish brewery workforce by more than half.

"The evaluation is expected to run for several months, and the outcome will be communicated to staff and other stakeholders as soon as possible," Diageo said.

From: Night Online

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