Diageo pumps £100m into Scotch whisky operation

Up to 200 new jobs are to be created when drinks giant Diageo rolls out a £100m investment programme to expand its Scotch whisky operations north of the border.

The multi-million pound programme is set to boost the group's malt and grain distilling capacity in Scotland with £80m of spending, with a further £20m being ploughed into new packaging and warehousing facilities.

Diageo, which employs more than 4,000 people in Scotland, operates 27 malt distilleries and two grain distilleries.

It says it will build a new malt distillery in the north of the country, with the preferred location being Roseisle on Speyside, while the Cameronbridge grain distillery in Fife will be expanded.

Planning consents for the Roseisle site are being sought, with construction expected to begin this year. It is hoped the distillery will open in 2009 with the first mature spirit available from 2012.

Packaging and warehousing capacity will also be increased across the country.

Bryan Donaghey, managing director of Diageo Scotland, said the investment illustrated the group's commitment to the region.

"While this is our largest single investment in Scotland for almost 20 years, Diageo has been committing significant sums to [the country] on a continuing basis.

"This investment is essential to underpin our long-term strategy for the development of our business here," he added.