Danish brewer Royal Unibrew will close a plant in Lithuania as it restructures its operations in the Baltic region.

The brewer said today (9 August) that production at its site in the Lithuanian capital of Vilnius will stop by the end of this year.

However, Royal Unibrew insisted it would boost capacity at its second brewery in Lithuania and at a site in Latvia by 300,000 hectolitres "to meet the continued increase in demand for the company's products in the region".

The brewer said it would book charges of DKK25m (US$4.3m) this year relating to the closure but said a possible sale of the Vilnius site could net the company up to DKK90m.

In April, Royal Unibrew posted rising losses for the first quarter as sales and marketing costs hit the bottom line. Sales were up slightly, however, at DKK648m from DKK626.4m last year.