THE news that international drinks giant Diageo's planned 650 million investment in new facilities will remain on hold until the Irish economy recovers has been welcomed by workers in the Great Northern Brewery in Dundalk.

The decision to place the investment programme on hold for an indefinite period follows an extensive 12-month review and means that the Dundalk brewery will remain open.

'This is good news for a change,' said Willie Quigley of Unite.

'We have to take it as a very positive decision for Dundalk and hope that in the long term Harp will have a larger role to play in the company.'

The company had indicated its intention to close its brewing operations in Dundalk and Kilkenny by 2013 and to build a new superbrewery on a 73-acre site in Leixlip, Co Kildare, on land part-owned by the Guinness family.

The investment programme was announced in May 2008 but was put on hold in January 2009 against a background of falling beer sales and pub closures.

Diageo had drawn up plans to sell surplus land at its Dundalk, Kilkenny and St James's Gate breweries, which, at the time, were estimated to be worth E500 million.

But the decline in the Irish property market meant that these land sales wouldn't be as profitable as originally thought.

In a note to staff last Thursday, Diageo said the investment programme 'remains on hold and will be revisited when the economic context is more certain'.

'Any news which means that the gates are staying open is to be welcomed,' said Willie.

There are currently around 80 people working in the Carrick Road brewery and Willie said that while the company's plans may include downsizing, the important aspect of the announcement is that the Harp brewery is to stay open.