Heineken has confirmed it is to close one of its breweries in Spain.

The brewer's Spanish unit announced today (21 November) that it plans to close its Arano brewery, located in the northern Spanish region of Navarre, next year.

A consultation process has begun with unions and local government officials following the decision, which will result in around 69 job losses, through a combination of early retirement, voluntary redundancy or transfer to other location.

The decision was taken to close the facility due to its mountain location and low capacity. The brewery has an annual capacity of 800,000 hectolitres.

"The move will improve efficiency and optimise capacity utilisation across the business at a time of challenging economic conditions and the brewery's high operating and distribution costs given its location," Heineken España said.

All brewing, kegging and bottling capacity for Heineken's brands brewed in Arano - Cruzcampo, Amstel, Murphy's Red, Yuste, Amstel Oro and Amstel Reserva - will be transferred to the company's other breweries in the country.

Last month, Heineken opened a new brewery in Seville in the south of Spain. The brewery, nicknamed 'Jumbo' by the company, will be one of the largest in Europe, with a capacity of up to 5m hectolitres and covering 350,000sq. metres.

Heineken will see its number of Spanish breweries drop to four once the Arano site is closed.