Flats plan for Johnnie Walker plant

07/07/2009

Drinks company Diageo denies "secret" scheme for sell-off

Drinks giant Diageo has denied claims of secret plans to turn its Johnnie Walker whisky plant into luxury flats.

The firm last week announced plans to cut up to 900 Scottish jobs at the factory in Kilmarnock, but claimed staff and unions had been well aware of a quite separate proposal to sell off part of the site. Diageo described the timing of a recent planning application as "unfortunate".

Nonetheless, the news has shocked that those fighting to keep the plant and save jobs. Des Browne, Labour MP for Kilmarnock and Loudoun, described the news as "potentially explosive".

"The discovery suggests the company may have been planning to close the plant for some time," he said. "If so, they have been pulling the wool over everybody's eyes. Selling off the staff car park is only consistent with a plan to shut the plant. You can't consult meaningfully with the work force if you've already made your mind up."

In a statement, Diageo it continually reviewed land which was no longer required for business needs.

It said: "The land at Balmoral Road was first identified for possible development more than five years ago. It was considered to offer long-term potential for redevelopment because it is close to existing housing and therefore unsuitable for expansion of the main Kilmarnock plant."

The planning application had been "communicated to and discussed" with staff and unions and that most of them had "been aware that the issue had been under consideration for many years".