Pernod Ricard is to invest £40m in its whiskey and gin production arm – Chivas Brothers – to meet the growing demand of the Scotch whiskey in the international markets.

Under the expansion, Chivas Brothers will expand the production capacity by 25% at its facilities at Glenallachie, Glentauchers, Longmorn and Tormore on Speyside and also reopen its Glen Keith site in April 2013, which has been inactive since 2000.

New heat recovery technology is also being introduced to make stills 25% more efficient.

Chivas will also open a new bottling hall in Paisley in summer 2012 that will increase its hand-bottling capacity for products like Chivas Regal 25, the Royal Salute range, The Glenlivet and Ballantine’s.

The expansion comes on the backdrop of major projects handled by the company such as the re-opening of Allt-a-bhainne and Braeval distilleries, expansions at Glenburgie and The Glenlivet distilleries, and a series of investments at its sites in Paisley and Dumbarton.

Chivas Brothers chairman and CEO Christian Porta said they are committed to a capital expenditure of £40m annually, to further increase their distillation capacity and production facilities.

"This investment, allied to strong market growth, a continued commitment to innovation and the best suited portfolio to target the most profitable opportunities, will provide the basis for future value growth for our company," Porta said.

Chivas Brothers will also increase its inventory, which already contains more than 6 million casks and includes significant stocks of exceptional aged whiskey, by increasing annual purchases of high quality bourbon and sherry casks to ensure continuous supply of Chivas Brothers’ Scotch whiskey offering.

The company has a portfolio of Scotch whiskey and premium gin brands such as Chivas Regal, Ballantine’s, Beefeater Gin, The Glenlivet, Royal Salute, Aberlour, Plymouth Gin, Longmorn, Scapa, 100 Pipers, Clan Campbell, Something Special and Passport.

Image: Pernod Ricard will open a new bottling hall for hand-bottling of products like Chivas Regal 25, the Royal Salute range and The Glenlivet. Photo: Chivas Brothers