The Welsh whisky producer Penderyn Distillery, operating as The Welsh Whisky Co., has halted production at its largest and newest distillery.

Penderyn’s Swansea distillery – which was built on the historical Hafod Morfa Copperworks site – has “paused production temporarily” due to economic conditions.  

CEO Stephen Davies said the halt to production was due to several factors, citing the rise in alcohol duty in the UK, the cost of living crisis and the “general economic slowdown”.

The Swansea site has an annual capacity of 400,000 litres of pure alcohol a year.

Penderyn's remaining distilleries – located in Brecon Beacons and Llandudno – have annual capacities of 400,000 litres and 100,000 litres, respectively.

Davies said the company was still “overall” producing 500,000 litres of pure alcohol a year.

The Swansea distillery was funded with a £3.8m ($4.90m) lottery grant and was opened last year. The site also houses a visitor centre.

In 2022, Davies told Just Drinks that the Swansea site would “focus on producing whisky, a combination of single malts, blended malts and will also give us the opportunity to maybe do other styles”.

The site is still open to visitors and its corporate events and masterclass are running as normal.

Penderyn ships to more than 40 countries, with France its largest overseas market. China, as well as Germany and the US, make up what Davies has called Penderyn’s “four key export markets”.

The Welsh Whisky Co. reported a turnover of £23.1m ($30m) for the year ending 31 August 2023, an increase in comparison to the previous year’s £19.6m. The distiller posted a profit of £1.2m in its 2023 financial year, flat on a year earlier.