The UK-based brewing group, SABMiller, has announced that it is to close its Tumwater Brewery in Washington State. The brewery is scheduled to be closed in July and will result in the loss of 400 jobs.

SABMiller said the decision had been made to reduce operating costs and improve efficiency at its US operation, Miller Brewery. Tumwater is Miller’s smallest brewery and was thought to have required significant investment in new plant and production facilities.

Production at Tumwater will be moved to other breweries. Miller said it will offer severance packages to 50 salaried workers at the brewery and would seek to find jobs for those made redundant elsewhere in the company. The group is in negotiations with unions regarding the 346 hourly-paid employees at Tumwater.

The Tumwater Brewery was founded in 1896 when it produced the Olympia beer brand. Miller acquired the facility in 1999.