UK pub company Greene King is set to invest £40m ($50m) in a new brewery as it plans to move site in 2027.

The group’s new brewery will also be located in Bury St Edmunds, the same town as its current Westgate brewery.

The brewer, known for beers such as Old Speckled Hen and Abbot Ale, has been brewing cask ales at its Westgate Brewery in Bury St Edmunds for over 200 years.

Greene King’s new site will be located next to its distribution centre and will “significantly improve the sustainability of the company’s brewing operations”, according to a statement.

The company said: “Per [imperial] pint, water usage in the brewing process will be reduced by more than 50%, alongside significant improvements in energy efficiency. It will drive Greene King’s progression towards its science-based environmental targets, which includes the company’s aim to be carbon net zero by 2040, as well as reduce its greenhouse gas emissions by 50% by 2030.”

Nick Mackenzie, chief executive officer at Greene King, said: “Brewing in Bury St Edmunds is a core part of Greene King’s DNA. This investment represents a further and significant ongoing commitment to our brewing operations in a town which has such a rich and storied connection with our business and with brewing.

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“As we seek to make our operations more sustainable, our new brewery will future proof our ability to brew our much-loved brands, as we create a thriving modern hospitality business.”

Greene King will continue brewing operations at its Westgate brewery throughout the construction of the new site, which is currently slated for completion in 2027.

Over the last two years, Greene King has invested “over £9m” in its Belhaven Brewery in Dunbar, as “further evidence of its commitment to brewing in the UK”.

Greene King owns circa 2,600 pubs, restaurants and hotels across England, Wales and Scotland, employing around 39,000 people.