The Belgian beer giant Interbrew has reached an agreement with its unions on the restructuring of its industrial network in Western Europe.  This restructuring will include the closure of its Breda plant in the Netherlands and the downsizing of its Boddington plant in the UK.

The measures were announced last September, but the company said today that the total cost for the industrial restructuring would amount to €44m. This amount will be charged to the full year 2002 results, in the form of a net non-cash asset write-down of €16m (the previously announced €25m gross minus land value) and a cash cost for the social plan of €28m.

As a result of this restructuring, Interbrew expects a yearly improvement in EBIT of approx. €24m by 2005. "This restructuring is in line with the company's policy to focus on cash paybacks of three years or less," Interbrew said in a statement.

In the September announcement, Interbrew said it expected the restructuring to lead to 400 job losses.