Heineken has announced that it will close the Beamish & Crawford brewery in Ireland, resulting in 120 job losses.

Draught beer production at the Cork-based brewery will be transferred to the Murphy brewery in the same city, Heineken said today (4 December).

The Dutch brewer acquired Beamish following its part in the takeover of Scottish & Newcastle, endorsed by Irish competition officials in October.

It said that a strategic review concluded that Beamish should be closed. "The review concluded that a significant investment would be needed for the Beamish & Crawford brewery to meet international standards.

"This, combined with the difficulty of expansion, excess brewing capacity at Heineken Ireland and the challenging market dynamics, has reinforced the decision to close the brewery."

The move will help the group to achieve its cost savings target of GBP145m (US$214m) annually, in the wake of the S&N buyout.

Around 40 Beamish workers are expected to be transferred to Heineken Ireland, but 120 employees will be made redundant, Heineken said.