Diageo rejects alternative closure plan

09 September, 2009

Diageo has turned down proposals put forward by the Scottish government as an alternative to its planned production and packaging site closures in Scotland.

Diageo said the plans – formulated after an outcry over plans to close plants at Port Dundas in Glasgow and in Kilmarnock with the loss of 900 jobs – would “embed inefficiencies” and leave the company with “a significant economic gap”.

The Scottish government’s proposals included the building of a new packaging plant on a greenfield site near Kilmarnock and the delayed closure of Port Dundas.

Diageo said the plans would still lead to a net loss of 500 jobs.

David Gosnell, managing director for global supply at Diageo, said: “They don’t deliver a business model that would be good for either Diageo or Scotland.

“We need a sustainable Scottish operation that supports our international spirits business and provides a future for the 4,000 people we would employ in Scotland after this restructuring is completed.”

He added that Diageo intended to “engage with Scottish Enterprise and other agencies to discuss the regeneration of impacted communities”.

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