S&N will transfer manufacturing operations to its Yorkshire, Manchester and Gateshead sites.

Scottish & Newcastle (S&N) announced Tuesday it is to close its Berkshire Brewery operations by 2010 with the aim of saving £13 million per year and remaining competitive in the UK market.

The closure, which will see production transferred from Reading to the brewer’s Yorkshire, Manchester and Gateshead sites, will result in the loss of over 350 jobs.

S&N has however pledged that “the consultation process will include full support for all employees affected.”

S&N’s decision follows its November 2007 announcement that it was to cease bottling facilities at the Reading site and transfer three million hectolitres of production to Coors Brewers Ltd.

Stephen Glancey, S&N Group Operations Director commented on the latest move:  “It is well documented that there is general overcapacity in the UK brewing sector, and these proposals have been put in place to address this issue.

“The nature of the Reading site, the amount of investment required to make it competitive and its relative cost compared to other UK facilities means that there is a strong business case for closure.”

S&N, which recently agreed to a £7.8 billion takeover by Carlsberg and Heineken, said the closure plans had been shared with the Heineken & Carlsberg consortium “as part of the due diligence.”

By Natasha Piscitelli