Labatt closing brewery in New Westminster, B.C.

Labatt Breweries of Canada said Wednesday it will close its brewery in New Westminster, B.C., in April next year, a move that will put nearly 150 people out of work.

"This decision is based on our need to reduce excess capacity in Western Canada and improve our long term competitive position," said Stewart Gilliland, the president of Labatt Breweries of Canada.

The brewing company said it will offer separation packages to affected employees as set out in the collective agreement. Labatt said it has also set aside a proposed $1 million support fund to assist its employees, provided a closure agreement can be negotiated with Local 300 of the Brewery, Winery and Distillery Workers' Union.

The company also plans to donate a portion of the New Westminster brewery lands, worth more than $250,000, to the Royal Columbian Hospital Foundation once the brewery has been de-commissioned.

Labatt's other breweries are in Edmonton, Toronto, London, Montreal, St. John's, Nfld., and Creston, B.C.

Labatt is part of Belgian-based InBev S.A., the world's leading global brewer by volume.

• FROM Aug. 27, 2004: Shareholders approve union of Interbrew, Ambev