An independent Welsh brewer has announced a multi-million-pound expansion which will create jobs in north and south Wales.

The independent Welsh brewer Tomos Watkin, based at Llandeilo, Carmarthenshire, plans to increase production during the year.

The company has also confirmed a new strategic alliance with one of the UK's biggest regional brewers.

A new company has been formed, with the help of one of Wales's top banks and specialist corporate financiers, to put the new investment in place.

The plans are also thought to involve buying a nationwide network of pubs linked to the brewery.

Takeover bid

In February, Tomos Watkin's managing director Simon Buckley headed a £68m takeover bid for SA Brain in Cardiff - the largest Welsh independent brewer.

Mr Buckley intended to create a new Welsh National Brewing Company.

But the takeover bid failed.

Lager brewery's last orders

The news came in the same week as the closure of one of Britain's oldest lager producing breweries was announced.

North Wales's Wrexham Lager will call time in April.

Carlsberg-Tetley, which owns the brewery in the north Wales town, earmarked it for closure two years ago.

However, the plant has enjoyed four more months of production than originally thought thanks to demand over the millennium.