A BREWERY has announced plans to transfer the brewing of its beer to Ireland at the cost of job losses.

Around 90 jobs will be lost at Diageo Park Royal, the current home of Guinness beer for the British market, when it moves to the company's historic St James's Gate brewery in Dublin during the summer of next year.

The news of the closure came as a shock, particularly to Brian Revell, the Trade & General Workers' Union's national organiser for food and agriculture, as they had no prior indications of any problems.

He said: "This is one of the most efficient breweries in the UK. T&G members have worked hard and co-operated with changes to ensure that it is profitable. Closure is a harsh price to pay for profit."

Gerry O'Hagan, supply director for Diageo's UK & Ireland brewing business, said the decision was a business one.

He said: "A major review of our brewing business in the UK and Ireland has shown very clearly that the best option for the future would be to consolidate our production for the Great Britain market into Ireland.

"Sadly, around 90 Diageo jobs would be lost at Park Royal. This is particularly regrettable because of the excellent track record of our employees there.

"Our highest priority will be to support our people at Park Royal in working through this difficult period."

Trade union officials were due to meet company managers yesterday when they were expected to be given an opportunity to study the details behind the closure announcement.

Mr Revell said before the meeting: "We should be in a much better position then to know how best to advise our members.

"At present questions arise like why the decision has been made, what its impact might be on other Diageo beer operations in the UK and what impact there will be on the distribution function which is also based at Park Royal."

The Park Royal brewery, which produces draught Guinness only for the British market, was opened by the Guinness Company in 1936 and occupies 19 acres of the total site.

Although the Park Royal site will stop brewing Guinness beer after the summer of 2005, Diageo will still retain a significant presence on the Park Royal site.

Mr O'Hagan added: "Between the two breweries in London and Dublin, we currently have more brewing capacity than we need.

"We know that it will take only a limited additional investment to build the already substantial capacity of St James's Gate to the level where it can supply the Great Britain market with the draught Guinness currently supplied from Park Royal.

"The right decision for the future of the Guinness brand is to invest in Dublin."