Brewing giant orders a half of Guinness

Published on Friday 9 May 2008 14:08

HALF of the historic brewing home of Irish stout Guinness is to be sold and 250 brewing jobs axed under plans unveiled today by drinks giant Diageo.

But the group pledged to keep Dublin's famous St James's Gate brewing site open to protect the "heritage" of the Guinness brand and will spend part of a 520 million investment in renovating the brewery.

Diageo said it will instead close two smaller breweries at Kilkenny and Dundalk in Ireland, at the cost of more than half of the 450 brewing staff employed in the country.

The company said part of the central Dublin plant will be surplus to requirements as plans were unveiled for a new brewery close to the city.

The sight, sounds and smell of the 64-acre brewery near the River Liffey have been a part of Dublin's character since Arthur Guinness first started making his brew there in 1759.

Diageo chief executive Paul Walsh said the breweries at Kilkenny and Dundalk will shut while 650 million euro (520 million) is to be poured into the St James's Gate operation in a revamp of its brewery and popular tourist attraction.

"This will be the single biggest capital investment made by Diageo in its supply infrastructure since the company's creation 10 years ago," he said.