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Diageo cuts alternatives examined | Diageo cuts alternatives examined |
(about 12 hours later) | |
A taskforce set up to save two Diageo plants earmarked for closure is to examine an independent report offering alternatives to the cuts. | A taskforce set up to save two Diageo plants earmarked for closure is to examine an independent report offering alternatives to the cuts. |
Finance Secretary John Swinney, who will chair a private meeting of the group at St Andrews House in Edinburgh, said it was a "crucial step". | Finance Secretary John Swinney, who will chair a private meeting of the group at St Andrews House in Edinburgh, said it was a "crucial step". |
Diageo proposes to close its Johnnie Walker bottling plant in Kilmarnock and the Port Dundas distillery. | Diageo proposes to close its Johnnie Walker bottling plant in Kilmarnock and the Port Dundas distillery. |
It says the 900 job losses would be off-set by 400 new posts in Fife. | It says the 900 job losses would be off-set by 400 new posts in Fife. |
Scottish Enterprise, the government's enterprise agency, is co-ordinating an effort to draw up a plan for an alternative to closure. | Scottish Enterprise, the government's enterprise agency, is co-ordinating an effort to draw up a plan for an alternative to closure. |
The taskforce will study a report by BDO Stoy Hayward, which evaluated Diageo's original plans and will provide information on possible alternatives. | The taskforce will study a report by BDO Stoy Hayward, which evaluated Diageo's original plans and will provide information on possible alternatives. |
Range of options | |
The report will not be made available publicly as it contains commercially sensitive information. | The report will not be made available publicly as it contains commercially sensitive information. |
Mr Swinney said the report included a range of options, including Diageo building a smaller bottling plant in Kilmarnock. | |
He told BBC Radio Scotland: "There are different suggestions made about the possibility of continuing packaging and bottling activity at Kilmarnock, on the existing site and at different sites." | |
But he admitted it was unlikely all the proposed Diageo job losses could be prevented. | |
"Throughout this process I have made it quite clear that I thought it was going to be difficult to maintain employment numbers at the level they currently are at," he said. | |
"I think most people would accept that is the case." | |
Diageo has said it will co-operate with the efforts of the taskforce and listen to its conclusions. | Diageo has said it will co-operate with the efforts of the taskforce and listen to its conclusions. |
About 700 jobs would be lost with the closure of the East Ayrshire bottling plant and as many as 200 with the closure of the Glasgow facility. | About 700 jobs would be lost with the closure of the East Ayrshire bottling plant and as many as 200 with the closure of the Glasgow facility. |
The company has said the redundancies would be offset by the jobs it plans to create at its packaging plant in Leven, Fife. | The company has said the redundancies would be offset by the jobs it plans to create at its packaging plant in Leven, Fife. |
It estimates the closure plans should save £20m each year, from an investment of £100m. | It estimates the closure plans should save £20m each year, from an investment of £100m. |
The taskforce is made up of representatives from East Ayrshire Council, Glasgow City Council, Scottish Enterprise, trades unions and local politicians. | The taskforce is made up of representatives from East Ayrshire Council, Glasgow City Council, Scottish Enterprise, trades unions and local politicians. |