Guinness brewing ops being consoldiated in Irleand

DUBLIN, Ireland (AP) - Diageo PLC said Friday it will close two Irish breweries, reduce operations at a third facility and cut its staff in the country by more than half as it consolidates Guinness brewing operations in Ireland.

The $1 billion-plus reorganization plan calls for closing breweries in Kilkenny and Dundalk and downsizing a third in Waterford while upgrading the St. James's Gate brewery in Dublin and building a second brewery near Dublin.

The Kilkenny and Dundalk facilities are marked for closure in 2013, the projected completion date for the new brewery near Dublin. A Belfast packaging facility will not affected.

The reorganization will cut the number of workers in Irish brewing operations to 183 from 434. The new total will includes 100 workers at the new Dublin brewery, said Gerry O'Hagan, supply director for Diageo in Ireland.

The company earmarked 150 million euros ($230 million) for the reduction in jobs in addition to the capital investment of 650 million euros ($1 billion.)

The updated St. James's Gate brewery, established in 1759, will produce Guinness primarily for the Irish and British markets, Diageo said, and will be further developed as a tourist attraction.

The new brewery will be Ireland's largest, concentrating on production of Guinness for export and the production of ales and lagers, the company said.

Diageo said the plans would free up land in Dublin, Kilkenny and Dundalk valued at approximately 500 million euros ($770 million) for redevelopment.

Diageo shares slipped 0.5 percent to 1,023 pence ($19.99) by midday in London.

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