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Carlsberg to close 2 Russian breweries

Xinhua, January 30, 2015 Adjust font size:

Danish brewer Carlsberg will close two of its 10 breweries in Russia, the company announced Thursday.

Due to last year's suspension of production at the breweries located in Chelyabinsk and Krasnoyarsk, Carlsberg has evaluated its Russian production structure and has decided to close the two breweries, it said in a statement.

According to Carlsberg's 2014 interim financial report, its market share in Russia has declined by an estimated 6 to 7 percent because of the uncertain macroenvironment, weak economic development and bad weather.

It added that the sales and distribution organisations will remain in the two cities, but their supplies will be provided by the remaining eight Russian breweries.

Carlsberg expects that the closures will reduce the Russian capacity by approximately 15 percent and will impact some 600 employees.

Besides, the closures, including related restructuring, will result in a pre-tax, non-cash write-down of approximately 700 million Danish kroner (109.38 million U.S. dollars).

This amount will be included in special items for 2014 and will have no impact on 2014 operating profit or adjusted net result, it added. Endit