| Diageo restructure 'won't damage UK bottle makers'
Simeon Goldstein, Packaging News, 06 August 2009
Controversial plans by drinks manufacturer Diageo to restructure its Scottish bottling operations are unlikely to damage the UK glass manufacturing sector, the head of British Glass has predicted.
Diageo last month caused outrage when it proposed the closure of its Johnnie Walker bottling plant in Kilmarnock and other restructuring measures at bottling facilities in Glasgow and Fife and a distillery in Port Dundas that would lead to the possible loss of up to 900 jobs.
Management has come under intense pressure to rethink the plans. Questions have been asked on the matter in Westminster and Scottish first minister Alex Salmond led a march of more than 20,000 people in Kilmarnock in protest at the plan.
Diageo has said, however, it plans to spend £86m expanding its Leven plant in Fife, creating 400 new positions there.
David Workman, director general of British Glass, played down the likely impact on British bottle manufacturers, saying that the key was for bottling to remain in the country.
He said: "If it's an exercise in streamlining and cost reduction, rather than moving filling abroad, it should not impact the sector too much."
Staff consultations on the closures are expected to last into October and Diageo has said it will consider an alternative business plan put forward by Scottish Enterprise when it is submitted later this month.
Jennie Formby, Unite national officer for food and drink, said the goal was to prevent the closures and minimise job losses. "It is possible to achieve substantial savings, that could include some job losses, and maintain the firm's presence in Kilmarnock," she said.
Diageo Scotland spokeswoman Audrey Ramsey told Packaging News the firm understood why people had taken to the streets and respected the right to protest. "We are open and realistic about what needs to be done and look forward to seeing [Scottish Enterprise's] proposal," she said. |
