Spirits giant Diageo is ramping up its whisky production with the addition of a second whisky distillery in Teaninich on the Cromarty firth, as well as expansions to its existing operation in the town.

The new £50m distillery will be built next to the company’s existing plant, which is set to double in capacity following a £12m injection. The new plant will be capable of producing 13 million litres of single malt whisky a year. Both plants will be used to supply a range of Diageo’s blended Scotch whisky brands.

The construction, which is expected to begin in 2014 once planning permission has been granted, forms part of a £1bn five-year investment plan launched last year.

The brand is also planning to increase capacity at its Mortlach distillery in Dufftown with a £30m investment to build a new stillhouse, as well as building a bio-plant to process by-products of whisky production at Glendullan.

Bryan Donaghey, managing director of Diageo Scotland, said the announcement was a “significant milestone” in the brands’ investment programme to support the global growth of its Scotch whisky brands. “The plans also demonstrate Diageo’s commitment to building a sustainable business through investment in energy efficiency and renewable energy technologies,” he said.