The Belgian brewing group, Interbrew, is to continue brewing its popular bitter brand, Boddingtons, in Manchester, the brand's spiritual home. Interbrew had been considering moving production from the city's historic Strangeways Brewery.

Interbrew's decision follows extensive negotiation with employees and the union at the brewery, the Transport and General Workers' Union (TGWU), which have been taking place since the announcement in September announcement that it planned to transfer draught-flow production to the Preston and Magor facilities.

“Over the past six weeks we have been working closely with our employees and the Unions to achieve the best possible outcome for the people who work at Boddingtons Brewery, within the context of our need to manage the cost effectiveness of our manufacturing sites," said Interbrew UK chief executive, Stewart Gilliland. "The consultation has resulted in our taking the decision to keep draught-flow production of Boddingtons at Boddingtons Brewery, although this is subject to on-going assessment of the operational effectiveness of the brewery."

The company also said there would now be no compulsory redundancies in Manchester though some voluntary redundancies will go ahead. These will be achieved through voluntary separation, relocation, early retirement, Interbrew said, in addition to retraining packages.