Australian-based maltster United Malt Group will close one of its five operations in the UK at Grantham, consolidating production at a second malt house in England at Witham and Arbroath in Scotland.
Shuttering the 56-year-old Lincolnshire site next month will cost about $1 million in redundancy payments and $2m to United's balance sheet through non-cash asset impairments.
"We do not take the decision to close any facility lightly and we fully appreciate the impact this has on our people at Grantham and the community," said managing director Mark Palmquist.
He said the company, which trades in Britain as Baird's Malt, had a disciplined approach to investing in key assets and optimising production efficiencies, aligned to market growth and greater asset utilisation.
Consolidating malt production into more efficient sites would cut United's energy costs, waste and water use across the group.
"We will ensure our people at Grantham are supported through this process and receive their full entitlements," he said.
The Grantham malthouse, the last surviving in the malting town, has supplied 14,000 tonnes to distilling and brewing markets in the past two and a half years.
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Meanwhile, Bairds' Scottish malting facilities are being upgraded to add 79,000 metric tonnes of capacity across its Arbroath and Inverness sites.
Arbroath's revamped operations are due to start commercial production this month, producing up to 22,000 tonnes a year.
Work at Inverness, disrupted by COVID-19 workplace restrictions on tradesmen, is expected to extend about five months longer than planned until May 2022.
United Malt will hold its first annual general meeting later this week via a video conference, where newly appointed US-based director Gary Mize is seeking his official election to the board.
United, led by former GrainCorp chairman, Graham Bradley, and former GrainCorp managing director Mr Palmquist, was listed on the Australian Securities Exchange almost a year ago after splitting from GrainCorp's grain processing portfolio.
GrainCorp retains an 8.5 per cent stake in the business.
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Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
