30 jobs to go at Manchester Royal Brewery

SCOTTISH & Newcastle plans to cut around 10% of the workforce at its Manchester Royal Brewery in Moss Side.

Around 30 of the plant’s 300 staff face the axe, as the plant introduces a new shift pattern to improve its efficiency over the next two years.

But a spokesperson for the company told TheBusinessDesk that the Manchester plant, which produces brands including Fosters, Kronenbourg, and Strongbow cider, remained “hugely important”.

A spokesperson said: “There will be a new shift pattern and we will be investing capital to improve the overall efficiency.

“We have said that there will be a small reduction in jobs over the next two years, and will continue discussions with employee reps to determine how these can be achieved.”

Scottish & Newcastle, which was taken over by Heineken last year, recently invested around £17.5m in a new biomass combined heat and power plant facility, which is due to start producing electricity next month.

The plant will burn spent grain and woodchips to generate both steam and up to 37,600 MWh of electricity a year, reducing the plant’s dependence on fossil fuels.

Paul Hoffman, S&N operations director, said: “Falling beer sales have created general over capacity in the UK brewing sector; and rising input costs have put unprecedented pressure on our business.

“These proposals…are designed to address these challenges and to ensure that we remain competitive in the future.”

The company also announced that it was to close its Dunston brewing operations in Gateshead by mid 2010 and transfer brewing operations to the John Smith’s Brewery in Tadcaster, with the loss of a further 63 jobs.

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