Carlsberg UK is to close its Leeds brewery in 2011, with the loss of 170 jobs.

Falling consumption, higher duties, input inflation and regulatory pressure meant Carlsberg could “no longer justify running two major breweries in the UK,” the brewer said.

“Although the business has remained robust in tough market conditions, this proposed move is vital to ensure Carlsberg UK remains a strong and sustainable business in the future,” added supply chain director Nick Webb.

Carlsberg UK’s parent company this morning said nine-month net revenue rose 7% to DKK 45,420m, and operating profit rose 10% to DKK 6,592m.

However, “deteriorating markets” in the UK and the Baltics had impacted earnings in Northern and Western Europe. It cut its expectations for full-year operating profit growth from 12% to 8%.