A new Eu650m (£520m) Guinness brewery is to be built outside Dublin. But the historic St James’s Gate brewery next to the River Liffey will be redeveloped and continue to supply the Irish and British markets. Plants in Kilkenny and Dundalk will close with the loss of up to 250 jobs, while the Waterford brewery will be restructured. The new brewery, the biggest in Ireland ad the first large-scale brewery to be built in Ireland or the UK for more than 20 years, will produce Guinness for the foreign market, as well as other Irish beers including Kilkenny and Harp. Diageo chief executive Paul Walsh said it would be the biggest single capital investment made by the company since its creation 10 years ago and represented a “major vote of confidence” in Ireland as a global brewing centre. Guinness has been brewed at St James’s Gate since 1759 and the brewery is one of Ireland’s leading tourist attractions. Diageo will sell off half the site and redevelop the rest, retaining the popular Guinness Storehouse tourist centre which attracts more than 1m visitors a year. But the sale of property around St James’s Gate, says The Times, could increase City speculation that Diageo intends to sell off Guinness from its portfolio. One source said that Guinness was now “extraneous” to the mainly spirits business and a beer company like Heineken may want to buy it. The Daily Telegraph 10/05/08 page 35 (BusinessNews) The Times 10/05/08 page 68 (Business) Financial Times 10/05/08 page 17 The Independent 10/05/08 page 53 (Business) The Guardian 10/05/08 page 39 (Financial)