STV News can reveal that Diageo has rejected the Government's plan to halt closure plans in Kilmarnock and Glasgow.
Management have just announced their intention to stick to their original plan, despite the Government's offer of public subsidies to retain 900 jobs in the West of Scotland.
The firm will instead close the Port Dundas distillery and packaging plant in Kilmarnock. Management say it will be offset with the creation of 400 new jobs at the company's Levenmouth plant and an £86 million investment in Fife.
The Scottish Government had put forward an alternative business plan which would have seen a new plant created in Kilmarnock and would have resulted in the Fife expansion plans being scrapped.
But bosses have this morning told workers that they have rejected the Government's proposals in favour of sticking with their original intentions.
The news is likely to be met with anger from many politicians, some of whom had taken to the streets to protest the move.
Kilmarnock and Loudoun SNP MSP Willie Coffey led a debate on the issue at Holyrood last week. He told STV News: "This is a devastating blow for Kilmarnock and it's really important that the taskforce set up by the Scottish Government meets soon to discuss a response."
However, Central Fife SNP MSP Tricia Marwick told STV News: "I welcome the decision by Diageo to invest in Fife.
"I am saddened by the loss of the jobs in Kilmarnock, however, I believe this was the right decision and will secure the long term future of Diageo in Leven."
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