Guinness manufacturer Diageo has announced it is to close its brewing facilities in Dundalk and Kilkenny with the loss of up to 250 jobs. The company intends to rejuvenate its St James's Gate Brewery in Dublin city and invest €650m in the historic site. It also revealed plans to develop a new brewing facility close to Dublin, but the exact location of the new facility has yet to be announced. It has been widely reported that the new site is planned for Clondalkin. Diageo estimates that the sale of property and lands in Dundalk and Kilkenny will raise €500m. Workers at Diageo's plants in Dublin, Waterford, Kilkenny and Dundalk were briefed by management this morning. Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan welcomed the announcement. "This is a major investment that secures the future of brewing in Ireland," she said. "I also welcome the company's intention to retain and upgrade the St James's Gate brewery which is of great historic significance to Dublin." Kilkenny brewery Diageo says 93 people are directly employed in its brewing operation in Kilkenny. It is understood that there are possibly another 50 people employed in the Kilkenny brewery on short-term or temporary contracts. Brewing has been taking place in Kilkenny for almost 300 years. Mayor of Kilkenny City Marie Fitzpatrick said the news has come as a major shock. Ms Fitzpatrick said the area where the brewery is located is a vibrant part of the city. She said staff at the plant had suspected some element of downsizing, but not a full closure. Dundalk brewery Diageo employs 85 people at its Dundalk brewery. Jim D'Arcy, Chairman of the Dundalk Town Council, has expressed disappointment at Diageo's decision to end the long tradition of brewing in Dundalk. Cllr D'Arcy said the first priority must now be to ensure that the most attractive possible redundancy package is secured for the 85 people who will lose their jobs as part of the rationalisation programme, and that retraining is made available to those wishing to pursue other employment opportunities. The Executive Director of the Dundalk Chamber of Commerce has also said the news is disappointing. Bill Tosh said the announcement came totally 'out of the blue' for the people of Dundalk. He said the plant's closure would have a wide effect, as the company used local firms for some contracts like maintenance and distribution. Cllr Jimmy Mulroy, Chairman of Louth County Council said Diageo's decision highlights the need to diversify the range of employment opportunities available in the town and in Co Louth more widely. Diageo workers' future Staff at Diageo were told this morning that employees affected by the change will be offered relocation packages where possible, but severance packages, career counselling and outplacement support will also be made available. General Secretary of the Guinness Staff Union Sean Mackell said this morning's announcement is very bad news for workers. He said the GWU would be totally opposed to compulsory redundancies. He said the final arrangements of the plan would only be determined following discussion and negotiation with staff.Mr Mackell said the company was trying to give the impression that the announcement was good news for Ireland, when in fact the opposite was the situation. He said Diageo has made a profit every year in Ireland since 1759
