The Tasmanian government is mulling the purchase of the more-than-century-old “culturally significant” James Boag’s brewery, after time is called on its beer production.

Parent company Lion announced in June that the brewery in Launceston in northern Tasmania will shut in November.

Tasmanian Premier Jeremy Rockliff has met beverage company Kirin, which owns Lion, and said it had agreed to provide in-principle support to explore the state’s proposal to purchase the site.

“The Boag’s site is part of Tasmania’s industrial and cultural heritage,” he said on Wednesday.

“Any transition must be managed responsibly and with a focus on future economic opportunities.”

A union campaign to convince Lion to sell the brewery – which opened in 1881 – to another beer maker has collected more than 3500 signatures but hasn’t shifted the company’s decision to wind-up production.

Lion blamed nationwide declining beer sales for the decision to shut. It will continue to make Boag’s beer on mainland Australia.

The company had already moved some production out of Launceston in 2024, and said the brewery was operating at one-fifth of capacity. The closure will leave some 40 workers without jobs.

The government hasn’t provided any details on what it would cost to buy the site, or what it could potentially be used for in the future.

Kirin and Lion said they would work collaboratively with the government and council in relation to the site’s future use, Rockliff said.

Kirin was also considering further requests in relation to worker support and had committed to “explore small batch opportunities with Tasmanian brewers”, he said.

The state government and Kirin have agreed to pursue enabling legislation to support future redevelopment opportunities across the precinct.

Rockliff said any future development must strike the right balance between preserving heritage and unlocking investment.

“We want to see a sustainable future for this site, support for workers and new opportunities that strengthen Launceston and northern Tasmania for decades to come,” he said.

-AAP