Diageo, the world’s biggest drinks group, is rationalising its Scottish production operations, with the loss of 500 jobs. The maker of Smirnoff vodka and Guinness is to close two plants – in Kilmarnock and Port Dundas in Glasgow – within the next two years. The closures will result in 900 job losses although 400 new jobs will be created in Fife through an £86m expansion of an existing packaging plant. Bryan Donaghey, managing director of Diageo Scotland, said the decision to make the closures had only been taken after an “exhaustive review” of all possible scenarios.