Brau Union Romania has announced plans to close one of its five breweries in the country. The company, which is part of the Heineken Group, will close its Grivita brewery in Bucharest in November.

"The main reasons behind this decision were the high costs related to the production process and transport," a spokeswoman for Brau Union told just-drinks yesterday (27 July). "We had to take into account the significant perturbation of the purchasing and transport activities as a consequence of the implementation in the near future of the urban plans of local authorities.

"In the long run we also considered the fact that the European regulations we will have to comply with will make the development, and even the existence, of a production unit in the middle of the city impossible.

"We are analysing the best solutions for the machines, utilities, buildings and land we have there."

Brau Union will have four remaining breweries in Romania, at Miercurea Ciuc, Haţeg, Constanţa and Craiova.