Speyside is to be the focus of new
proposals by Diageo to grow its Scotch
whisky production capacity.
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, which runs more Scotch whisky
distilleries than any other company, is
also developing a series of proposals
which would follow the Dailuaine
proposal and which would see production
capacity increased at existing
distilleries by over 10 million litres
per annum (mla) over the next two to
three years – the equivalent capacity to
building a major new distillery – with
an investment of around £10million. The
details of these plans are still being
developed and will be rolled out
gradually over the next two to three
years, subject to the relevant planning
processes.
The Speyside region is home to 17 of
Diageo’s 28 malt whisky distilleries in
Scotland. Diageo has already invested
heavily in the region with the opening
of the Roseisle distillery last year –
the first major malt whisky distillery
to be built in Scotland for more than 30
years, at a cost of £40million.
Announcing the plan, 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. Speyside is
already at the heart of our malt
distilling operations and I am delighted
that, beginning with the Dailuaine
proposal, we are looking at further
enhancing our business in this area."
Bryan Donaghey, Managing Director of
Diageo Scotland, said the announcement
was the latest in a significant ongoing
Scotland-wide investment in Scotch.
He 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 in Scotch
whisky growth outside of the Speyside
area. This year will also see
£3.2million capital investment in
increasing capacity at the Glen Ord
distillery near Inverness.
Earlier this year, Diageo announced a
£3.5million investment in increasing
capacity at its Caol Ila distillery in
Islay.
Diageo’s announcement was warmly
welcomed by Moray Council
representatives as a positive boost for
the local economy.
Councillor John Russell, chairman of
Moray Council’s economic development and
infrastructure services committee, said:
"I very much welcome this announcement
by Diageo which further underlines the
importance of the Scotch whisky industry
to the Moray economy."
Moray Council’s Labour group leader,
Councillor John Divers, also welcomed
the investment during a time of economic
uncertainty. "Hopefully the construction
phase will create much-needed new job
opportunities in the area," he said.
SNP group leader and Speyside councillor
Pearl Paul said: "The investment by the
whisky industry in Speyside continues to
be really significant and I am delighted
that Diageo are showing the confidence
to keep up that momentum.
"At a time when Moray is under severe
economic pressure from the UK
Government’s defence decision, that
confidence in one of our key industrial
and tourism sectors is very welcome
indeed."
Councillor Graham Leadbitter, the SNP
group’s spokesman on economic
development, said: "With major
investment at Roseisle, Rothes and now
further investment planned in Speyside,
the whisky industry is bucking the
trend,
"The continued success of the whisky
sector is critical to Moray’s economic
recovery and future growth. Investment
like this does not just create new jobs
but also supports the construction and
manufacturing sectors."
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