GLOBAL DRINKS giant Diageo is expected to announce a major scaledown in its brewing activities at the iconic St James's Gate plant in Dublin, which has been making Guinness since 1759.
Global chief executive Paul Walsh will today announce the results of a long-running review of its brewing operations here and the 800 affected workers are bracing themselves for the worst. "We're expecting the news to be somewhere between dreadful and awful," one senior source said.
It is understood Guinness plans to gradually scale down its brewing activities at St James's Gate, Kilkenny, Dundalk and Waterford in favour of a new multi-million euro greenfield site, possibly in Clondalkin.
This would lead to the creation of hundreds of jobs at the new Dublin facility. Sources said it could take up to seven years for the operations to be transferred. Staff will be informed about the restructuring this morning.
Sources indicated last night that Diageo would retain some activities at the world-famous St James's Gate brewery. This is likely to include its popular Guinness Storehouse attraction, which draws about 900,000 visitors a year. In addition, Diageo is expected to continue to make the black concentrate - known as the "essence of Guinness" - at St James's Gate. This is an integral part in the brewing of a pint of stout but is not labour-intensive.
Retaining it at St James's Gate would allow Diageo to continue to link the world-famous site with the Guinness brewing process.
The facility also houses a medical centre, which is available at no charge to the company's 4,500 pensioners. It is not clear if Diageo will move, or even close, this facility.
Rumours about the future of the 55-acre St James's Gate facility have been circulating for many years. About 200 workers are involved there in brewing the pint of plain.
Arthur Guinness started brewing stout at St James Gate 249 years ago. He signed up to a 9,000-year lease on the brewery, with an annual rent of £45. It now requires a large investment while Iarnród Eireann's plan to dig under the site to build a rail link between Heuston and Connolly stations has placed a question mark over its viability.
St James's Gate houses the St Patrick's windmill, once the largest of its kind in western Europe, and a number of listed buildings, making any redevelopment tricky. Diageo's breweries in Kilkenny, Dundalk and Waterford will also be affected. They brew a range of beers, including Smithwicks, Kilkenny and Harp.
