DRINGS giant Diageo, has started work on a £10 million new cooperage at the organisation's existing site at Cambus near Alloa.

The company says the project is fundamental to the company's long-term sustainability with the total number of jobs at the new Cambus Cooperage likely to be around 70.

Employees, Billy Dawson, the company's longest serving cooper and Jack McNeil, the youngest apprentice cooper, officially started the construction process on Monday during a special community event where stakeholders were given the opportunity to see the plans for the new facility.

Diageo Scotland managing director, Bryan Donaghey said that the cooperage would be fully operational by the summer of 2011.

"This important new development will operate alongside our existing facilities in Clackmannanshire which include the largest spirits warehouse complex in Europe at Blackgrange," added Mr Donaghey. The company's existing cooperage at Carsebridge is to close on completion of the new development and the 40 jobs we have there will transfer to Cambus.

"As a business it is vital we remain globally competitive and developments like this play a fundamental role in securing the long-term sustainability of our operations in Scotland. The new location provides better logistical benefits and allows us to further upgrade our operations.

"It also reinforces the company's commitment to keeping alive and support the craft of coopering which remains an important element of whisky production.

"Diageo remains one of the country's largest employers with 4,000 people working across our 50 Scottish sites and having committed in excess of £500 million in investment in the business over the past five years, we are confident the steps being taken now will deliver significant results in the years ahead for the company and the country".

Diageo will be relocating some roles from its Dundashill cooperage in Glasgow to Cambus as part of the move.