Published: Wednesday, 1st July, 2009 1:14pm

Diageo creates 400 jobs in Fife

Drinks giant Diageo is creating 400 jobs at its Leven packaging plant.

An £86m investment will see the construction of a new packaging hall to open in mid-2011.

The company announced a massive restructure today, which will see 900 jobs cut across Scotland.

A distillery in Port Dundas, Glasgow and a packaging plant in Kilmarnock are to close.

Diageo said work from Port Dundas could be met through the continued expansion of the Cameronbridge Distillery in Fife.

Last month the firm, whose brands include Guinness, Smirnoff Vodka and Johnnie Walker whisky, reported that sales were down 7% in the three months to the end of March.

Bryan Donaghey, managing director of Diageo Scotland, said, "We believe the plans announced today will help secure the sustainability of our business in Scotland."

Council Leader Peter Grant welcomed the jobs boost.

He said: 'Fife has an excellent long-term relationship with Diageo. It is superb that this reinvestment at the Banbeath plant comes on the heels of the £65m current investment programme at Cameronbridge Distillery which will significantly increase capacity at the site and introduce a unique biomass power station to generate the power required for the site in an environmentally friendly way."

He said the quality of the Fife workforce is a "major factor" in Diageo's decision.

'The entire team at Diageo is a big part of the success story and they should be congratulated,' he added