Greencore said yesterday that it plans to close its 38,000-tonne barley-malting plant at Carnoustie in Scotland from the end of the year.

Carnoustie Maltings is the oldest malting plant operated by the company in Scotland. The closure will mean the loss of 12 jobs.

Greencore blamed the decision on overcapacity in the UK malting industry, particularly in Scotland. It cited "the combined effect of the continuing decline in domestic brewing output and reduced opportunities for profitable exports".

Scotland had successfully serviced the growing markets of eastern Europe and Russia over the past few years but these areas were rapidly moving to self-sufficiency as new malting capacity is installed, Greencore said.

The closure of Carnoustie follows the shutdown of another small malt plant in Ipswich last month, with the loss of 16 jobs.

The closures will reduce Greencore's malt production capacity to around 515,000 tonnes, from 590,000 tonnes, analysts said.

A Greencore spokesman said the closures, aimed at allowing the company to focus on fewer and more highly invested sites, would increase efficiencies.

The rationalisation of Carnoustie would allow Greencore to focus resources on its two modern sites in Scotland, at Buckie and Glenesk, the company said, that while capacity lost at Ipswich would be met through increased output at Bury St Edmunds.

"We very much regret having to take this decision but we are operating in a very competitive marketplace," said Mr John McNamara, chief executive of Greencore Malt.

Greencore's malting business is the world's sixth-largest in terms of capacity with 10 plants, based in Ireland, Britain and Belgium.