The French-owned, Paisley-based drinks company, Chivas Brothers, is set to invest another £40million to keep up with the ever increasing demand in the whisky market.
Part of the investment programme will see the Banffshire distillery Glen Keith reopen, having been mothballed back in 2000.
Another four distilleries – Glenallachie, Glentauchers, Longmorn and Tormore. will also expand their operations. Its headquarters at Paisley will see a new hand-bottling hall, for high-end products, open in the summer of 2012.
The completion of the project will see the firm’s distillation capacity increase by a quarter.
Speaking about the news, the group’s chief executive and chairman, Christian Porta said:
“We are committed to a capital expenditure of £40m annually to further increase our distillation capacity and production facilities.”
With a vibrant whisky market, particularly in regards to exports, the Scottish whisky industry is enjoying record growth.
Recognising this, smaller distillers are also investing in their growth, with strategies such as invoice factoring likely to be considered. Without the might of a parent backer such as Pernod Richards, unlocking cashflow this way helps smaller firms keep up with industry giants such as Chivas.
Chivas Brothers are also investing in the future, notably through the introduction of heat recovery technology. The tech aims to make stills 25% more efficient, and is part of an ongoing initiative by the firm, with Porta commenting:
“This investment, allied to strong market growth, a continued commitment to innovation and the best suited portfolio to target the most profitable opportunities, will provide the basis for future value growth for our company.”