The brewing giant said the announcement follows a major review looking at how Diageo can best ensure the long term sustainability of its brewing operations in Ireland.
Rejuvenation of the historic St James’s Gate Brewery backed by a €153 million investment will result in the construction of a new brewhouse (with a capacity of 7m hectoliters) from the first half of this year.
Diageo said its plans were an important part of securing the long term competitiveness of Diageo’s beer business, while concentrating all brewing activity at the St James’s Gate site underpinned the company’s commitment to Ireland.
David Gosnell, president, Diageo Global Supply said: “The decision to consolidate to the St James’s Gate site is fundamental to delivering the competitiveness necessary for the long term sustainability of our brewing in Ireland. This is a significant investment and an expression of confidence by Diageo in our Irish operations.”
Irish minister for Jobs, Enterprise and Innovation, Richard Bruton, said: "This announcement represents a huge vote of confidence in the Irish economy by a world-leading company, creates very welcome construction jobs, and secures Diageo's brewing operations in Ireland for decades.
“High-tech manufacturing must be at the centre of our jobs recovery, and today's news that the next generation of Diageo's activities will take place at a brewing centre of excellence in Guinness's historic home in Dublin demonstrates what is possible.”
Every pint of Guinness sold in Europe and the US is currently brewed in Dublin, while other brands are also produced there.
Aside from the new brewhouse at St James’s Gate, the redevelopment work will also include: a new grain intake building and associated silos, an extension of the existing fermentation plant to the southwest of the new brewery and extensions to utilities generation and distribution.
In 2008 Diageo announced the centralisation of all Diageo brewing activities at one site, including the cessation of brewing activities at Kilkenny and Dundalk by the end of 2012.
These sites are now scheduled for closure in July 2013 (Dundalk) and December 2013 (Kilkenny), subject to planning and construction timelines at St James’s Gate.