Czech Republic: Staropramen brewery to merge Prague units, close Branik

Pivovary Staropramen, Czech beer producer, will close down its Prague-based unit Branik in the first quarter of 2007 and transfer its production to Staropramen, Pivovary Staropramen told CTK on February 24.

The move will require some 80 job cuts. Staropramen, also based in Prague, will take over production technologies from Branik and will be modernised with investment exceeding EUR 20 million (CZK 570 million).

"The Branik brewery has reached the maximum of its capacity and a further modernisation of the facility is not possible given its location and the fact that it is a national cultural heritage site," Pivovary Staropramen production and technical director Frantisek Samal said.

The Branik premises will probably be sold, Pivovary Staropramen spokeswoman Michaela Tryznova said.

Pivovary Staropramen operates three production units in the Czech Republic, namely Staropramen, Branik and Ostravar, and a distribution centre in Prague at present. Its parent company InBev plans to establish a centre in the Czech Republic this year for export activities for several European countries. It should give rise to more than 100 jobs.

InBev said today it wanted to create 295 new jobs in the Czech Republic and Hungary and cancel 360 jobs in western Europe within restructuring of its European operation.

InBev, the world's largest beer producer, wants to concentrate support services in the Czech Republic and financial operations in Hungary.