A disused distillery in Dumfries in Galloway that ceased production 90 years ago is to be reopened, Enterprise Minister Jim Mather announced today.

The Annandale Distillery will reopen with the aid of a £150,000 Regional Selective Assistance (RSA) grant, creating 18 new jobs in producing malt whisky.

Mather said the venture gave a "significant boost" for both the Dumfries and Galloway economy and Scotch whisky in general, which he says has been "hit hard by punitive increases in duty imposed by the Treasury".

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He continued: "In the absence of tax raising powers, Regional Selective Assistance is a scheme which helps Scottish businesses to flourish, encourages investment and stimulates job creation.

"I hope that RSA will prove a valuable tool in creating new jobs and resurrecting whisky production at Annandale and I wish those involved with the project every success."

Project Director David Thomson said they aim to create an "interesting and meaningful brand" in Annandale.

"Having conducted much of the detailed early planning, our project is now moving into the more advanced stages of design. This represents a significant private business investment in Scotland which, coupled with an indication of up to £350,000 from Historic Scotland and the offer of Regional Selective Assistance from the Scottish Government, will deliver real economic benefits and create new Scottish jobs."

(GK/NS)