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Diageo plans £9.5m upgrade at Speyside distillery

Published:  27 June, 2011

Diageo is planning a £9.5 million upgrade of its Scotch whisky production in Speyside.

A planning application has been submitted to Moray Council for the redevelopment of Diageo's Dailuaine distillery complex in Speyside and consultations with residents there will begin this week.

These plans would see a £9.5million upgrade of the existing bio-plant at Dailuaine, which deals with whisky by-products from a number of Diageo's distilleries, opening the potential for future production capacity increases across Speyside.

Diageo is also proposing to increase production capacity at existing distilleries by over 10 million litres per annum over the next two to three years - the equivalent capacity to building a major new distillery - with an investment of around £10 million. The details of these plans are still being developed.

The Speyside region is home to 17 of Diageo's 28 malt whisky distilleries in Scotland.

Diageo's malt distilling director Brian Higgs, said: "Scotch whisky has never been more popular around the world. In recent years we have been able to translate that into significant capital investments in our operations as we build our capacity to meet the global growth potential of Scotch."

Bryan Donaghey, managing director of Diageo Scotland, said: "Over the past six financial years Diageo has invested around £600 million in its business in Scotland, including our new £40 million distillery at Roseisle in Speyside which we opened last year. This announcement is another demonstration of our confidence in and commitment to the future of Scotland and Scotch."

Diageo is also investing £3.2 million in increasing capacity at the Glen Ord distillery near Inverness.

Earlier this year, it announced a £3.5 million investmentto increase capacity at its Caol Ila distillery in Islay.