Lion Nathan has announced a warehouse and distribution centre will be built on the site of its old Christchurch brewery, which has to be knocked down after being damaged in February's earthquake.
The company has opted to spend $15 million on the "state-of-the-art" centre instead of building a new brewery, because of the uncertain stability of the land it was built on.
"A brewery is a lot more complicated and much heavier [than a warehouse]," says corporate affairs director Neil Hinton.
The Food and Grocery Council took a positive view of Lion Nathan's decision.
“It is no doubt a great boost for Christchurch to see major New Zealand companies like Lion reinvesting and doing their part to assist with the rebuilding of the city,”, says CEO Katherine Rich.
Work will begin in about three months, and is hoped to be completed sometime in 2012.
Dunedin will take over most of the company's brewing in the meantime, and the 22 who lose their jobs will hopefully be redeployed.
Sixteen new jobs will be created in Dunedin.
3 News