Carlsberg is to close its Leeds brewery and move all operations to its Northampton site.

Carlsberg UK has announced it is to close its historic Leeds, UK, brewery in 2011, with the loss of 170 jobs.

The decision follows a year-long review of the company’s supply chain, which concluded that it cannot afford to sustain two major breweries in the UK.

From 2011, all UK operations will be located at its Northampton site.

Carlsberg said it hopes the closure will enable it to “remain competitive in the face of increasingly challenging market conditions resulting from falling consumption, higher duties, input inflation and regulatory pressure.”

Staff affected will be redeployed into other roles where possible and will be offered training and outplacement support to help them find new employment, Carlsberg said.

Nick Webb, Supply Chain Director of Carlsberg UK, commented: “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.

“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.”

Carlsberg brands were first exported to the UK in 1868 – 140 years later, the company’s two sites produce a combined one billion pints of beer a year and employ over 2,000 staff.

For more information, visit: www.carlsberggroup.com

By Natasha Piscitelli