Heineken has announced plans to close or sell one of its three French breweries, which it says could affect 220 job positions.

The potential closure or sale of the Schiltigheim site, located near Strasbourg, France, will enable Heinkeken to concentrate its production assets into two breweries instead of the current three, to ensure Heineken’s long-term competitiveness in the country.

The company plans to invest around €100 million to modernise, expand and improve the environmental performance of its remaining breweries in France, in Mons-en-Barœul and Marseille, with the creation of new jobs at both sites.

Pascal Gilet, chairman and CEO of Heineken France, said: “We understand the emotions aroused by the possible closure or sale of the Schiltigheim brewery, which we are all extremely attached to. But the site suffers from numerous limitations due to its location, which is no longer strategic, and its production costs, which are too high. For these reasons, we are considering closing it or selling it within three years.”

He added: “Our priority over that period will be to fully support the employees affected. We will also give close attention to any takeover offer for the site that may be received. This project is especially based on a strong ambition to maintain our overall production volumes in France at high-performing sites.”

The site at Schiltigheim – in the eastern region of Alsace – underwent a significant expansion in 2017, with the Dutch brewer investing €9.3 million to increase its existing production capacity of more than 450,000 hectolitres per year.