Molson Coors Brewing Co. has announced that it is finalising plans for the closure of its brewing and packaging facilities in Memphis and the transfer of those operations to other units.

The company said in February that it planned to close the Memphis brewery in early-2007. It has now confirmed that it expects the phasing-out of operations to begin during the second half of the current fiscal year and to be completed by the first quarter of 2007.

According to a report in the National Post, Molson Coors said it expects to incur severance costs of between US$15m and US$25m, other employee-related costs of about US$10m, with equipment relocation and other facility transition costs amounting to between US$5m and US$15m.

The brewer is also expecting to incur non-cash asset impairment related expenses of between US$75m and US$80m as a result of accelerated depreciation and one-time asset abandonments.