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City's historic brewery to close City's historic brewery to close
(20 minutes later)
Drinks giant Carlsberg has announced plans to close its historic brewery site in West Yorkshire with the loss of 170 jobs.Drinks giant Carlsberg has announced plans to close its historic brewery site in West Yorkshire with the loss of 170 jobs.
The company blamed falling consumption, and higher duties for the decision to shut its Leeds site by 2011.The company blamed falling consumption, and higher duties for the decision to shut its Leeds site by 2011.
Consultation with the workers has started and Carlsberg said it would seek to redeploy staff.Consultation with the workers has started and Carlsberg said it would seek to redeploy staff.
There has been a brewery on site in the city since 1822 when it used to produce just Tetley beers.There has been a brewery on site in the city since 1822 when it used to produce just Tetley beers.
The brewery now produces Tetley and Carlsberg and is one of two owned by Carlsberg. The other site is at Northampton.The brewery now produces Tetley and Carlsberg and is one of two owned by Carlsberg. The other site is at Northampton.
'Difficult decision''Difficult decision'
Nick Webb, supply chain director of Carlsberg UK, said: "We are announcing the closure proposal more than two years in advance so that our employees are able to prepare for the future.Nick Webb, supply chain director of Carlsberg UK, said: "We are announcing the closure proposal more than two years in advance so that our employees are able to prepare for the future.
"We have to consider difficult decisions to remain competitive in the current environment and we regret the risk to the jobs of our employees."We have to consider difficult decisions to remain competitive in the current environment and we regret the risk to the jobs of our employees.
"Although the business has remained robust in tough market conditions, this proposed move is vital to ensure Carlsberg UK remains a strong and sustainable business in the future.""Although the business has remained robust in tough market conditions, this proposed move is vital to ensure Carlsberg UK remains a strong and sustainable business in the future."
The company said it needed to maximise efficiency to remain competitive in the face of increasingly challenging market conditions, adding: "Unfortunately, in this environment it can no longer justify running two major breweries in the UK." It is a reality of the market - people are drinking less beer Darran Britton, Carlsberg marketing director
The company said it needed to maximise efficiency to remain competitive in the face of increasingly challenging market conditions, adding: "Unfortunately, in this environment we can no longer justify running two major breweries in the UK."
Carlsberg marketing director Darran Britton said the beer market had been falling for a number of years but sales had slumped by between 7% and 8% recently.
He said the company would continue brewing Tetley beer, preferably elsewhere in Yorkshire, if not somewhere in the north of England, but "definitely" in the UK.
The company gave no details of what it would do with the city centre site and could not say how many workers would be redeployed either to its other brewery or distribution sites.
Mr Britton said the Leeds brewery was less efficient than Northampton but said the closure decision was no reflection on the workers.
He said: "It is a reality of the market - people are drinking less beer."
Workers leaving the nightshift this morning and those arriving for the day shift were given the news by managers.