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13:45 GMT, Tuesday, 1 July 2008 14:45 UK

Distiller announces £45m revamp

Glenmorangie distillery worker

Whisky giant Glenmorangie is to relocate its headquarters to Edinburgh and upgrade distilleries at Tain and on Islay as part of a £45m plan.

Its present HQ at Broxburn, West Lothian, is to be sold to Diageo.

The revamp will also see the sale of its Glen Moray distillery at Elgin as a going concern.

Consultation with the company's 420 employees has started. Job losses are anticipated, but most are expected to go through retirements.

The company said it would focus on building its premium single malt Scotch whisky brands, Glenmorangie and Ardbeg, in response to growing demand.

"I was surprised to hear that Glenmorangie are to sell off the popular Glen Moray brand"
Richard Lochhead
Moray MSP

Stirrings in the glen of tranquillity

It is planning to withdraw from the bottling and sale of blended Scotch whisky.

Chief executive Paul Neep said the plan represented "significant capital investment".

He added: "We believe that these proposals will deliver long-term additional growth for both the company and also, importantly, for the local and wider Scottish economies."

Sites for the new headquarters and bottling plant have still to be revealed.

No job loses are expected among the 17-strong workforce at Glen Moray because Glenmorangie said the distillery would be sold as a going concern.

The business plans include a multi-million pound investment in Tain, Ross-shire.

Under the proposals, its distilling capacity will be increased, new whisky cask warehouses built and the visitor centre restyled.

The single malt Glenmorangie was first created at Tain in 1843.

WHISKY FACT FILE


The process of change will be phased over two years.

Further development is also planned at the company's Ardbeg distillery on Islay.

The distillery and visitor centre will be further upgraded and new cask warehousing constructed.

Moray's Nationalist MP and MSP were hopeful of the Elgin operation securing a new owner.

Richard Lochhead MSP said: "I was surprised to hear that Glenmorangie are to sell off the popular Glen Moray brand.

"The Elgin-based Glen Moray distillery is an important local business providing good employment and an important tourist attraction on the Whisky Trail."

MP Angus Robertson said: "The whisky sector is extremely buoyant at the present time and, indeed, for the foreseeable future, with massive investment across Moray and Scotland.

"This vibrancy in the industry should make the future of Glen Moray secure but until the details are resolved of the sale of this important brand there will understandably be some concern for local employees."



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Related to this story:
New look for famous Scotch dram (17 Aug 07 |  Highlands and Islands )
Whisky galore as sales hit record (04 Apr 07 |  Business )
Drinks firm's £100m whisky boost (15 Feb 07 |  North East/N Isles )
Glenmorangie snapped up for £300m (20 Oct 04 |  Business )

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