by FoodBizDaily.com staff writer
January 27 2010 - Dutch brewing giant Heineken has said that its planning to close its Louny Brewery in Czech Republic due to falling demand for beer in the country and the group's global strategy to cut costs.
According to the company’s plans up to 59 staff from Heineken's 987-strong workforce in Czech Republic are set to lose their jobs following the move.
All the operations from Louny will be transferred to Velké Brezno and Krásné Brezno (Usti Nad Labem), while the brewery site will be turned into a distribution centre.
Sources in Heineken said that closing of the brewery is part of its three-year cost savings programme, entitled Total Cost Management.
Falling domestic beer sales and lower export demand for Czech beers mean that the high costs of the running the "outdated" Louny brewery can no longer be justified, Heineken said.
A total of 13 jobs at other production sites within Czech Republic will be made available to Louny's 68 brewery employees.
Earlier Heineken's Total Cost Management scheme has also seen it announce job cuts in the UK, Russia and Romania.
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Heineken N.V.
Address: P.O. Box 28 Amsterdam, 1000 AA Netherlands
Telephone: +31-20-5239239
Fax: +31-20-6263503
About Heineken N.V.
Heineken N.V. (Heineken) is a beer brewer that owns and manages a portfolio of beer brands. Its principal brand is Heineken. In addition, the Company has more than 200 international, regional, local and specialty beers and ciders, including Amstel, Birra Moretti, Cruzcampo, Foster’s, Maes, Murphy’s, Newcastle Brown Ale, Ochota, Primus, Sagres, Star, Strongbow, Tiger and Zywiec. It has a global network of distributors and 125 breweries in more than 70 countries. Heineken comprises six geographical segments: Western Europe, Central and Eastern Europe, The Americas, Africa and the Middle East, Asia-Pacific and Head Office/eliminations. On April 28, 2008, Scottish & Newcastle plc (S&N) was acquired by Sunrise Acquisition Ltd (Sunrise). On August 29, 2008, Heineken acquired 96.54% of the voting rights of the beverage division of Eichhof Holding AG in Lucerne, Switzerland. On June 30, 2008, Heineken sold its investment in Brasserie Saint-Omer.