Diageo Korea to close plant after 39 years
By Kwak Yeon-sooDiageo Korea CEO Lee Kyung-wooDiageo Korea has decided to close its last remaining plant in Icheon, Gyeonggi Province, due to falling whisky sales, the Korean unit of the British premium whisky maker said Wednesday. The facility, which covers about 64,000 square meters, will be shut down in June 2020.Established in 1981, it has been bottling Smirnoff vodka for export and Windsor Scotch whisky specifically tailored for the Korean market. In 2009, the London-based distiller sold the plant with a 20-year sale-leaseback.However, the company decided to close down the plant before the expiration date due to a poor utilization rate and weak sales.“The decision has been difficult and it has come after careful consideration,” a Diageo Korea official said. “The unfavorable business climate in exporting countries, low utilization rate and loss of competitiveness were the main reasons for the shutdown decision.”About 29 full-time employees and 90 subcontractors are expected be affected by the latest decision.When asked if the company has any plans to downs
