WILLIAM Grant & Sons unveiled a plan to spend €35 million (£29m) reintroducing distilling to the Irish town of Tullamore on the same day as it was revealed that Scotch whisky exports hit a record £4.2 billion last year.

The company, which produces Glenfiddich and Balvenie as well as its eponymous blended whisky in Scotland, is to build a new pot still whiskey and malt whiskey distillery in Tullamore, 58 years after the original distillery was closed.

Stella David, chief executive of William Grant, said: "It represents an important next step in the long-term growth and development of the Tullamore Dew brand, one of Ireland's food and drink export success stories which is now the second-largest selling Irish whiskey worldwide."

"Irish whiskey is a major growth story internationally and with this investment we're looking forward to putting Tullamore Dew and the Midlands region back on the map as one of Ireland's premier whiskey-producing regions," said group marketing director Maurice Doyle.

William Grant acquired the business from C&C in 2010. Spirit for Tullamore is currently distilled near Cork.

Meanwhile, Scotch whisky exports to the United States hit the £600m mark for the first time last year as overseas shipments from Scottish distilleries reached a record £4.2bn, up 23% on 2010.

Demand rose in both developed and emerging markets, according to figures from the Scotch Whisky Association.

Exports to the US, the biggest market by value, reached £654.9m, up 31% on 2010. France, the second-biggest market, saw exports grow by 27% to £535.4m but it remains the biggest market in volume terms, receiving the equivalent 57.5m litres of pure alcohol, a 25% increase.

The surge in demand from affluent young drinkers in emerging markets has also continued.

Exports to Singapore, which serves as a distribution hub for much of Asia, rose by 44% to £317.9m. Taiwan saw an increase of 44% to £155.2m.

In South America, Brazil was the fastest-growing market by value with exports up 48% to £99.2m.

Gavin Hewitt, chief executive of the Scotch Whisky Association, said: "Despite continuing economic uncertainty, Scotch Whisky continues to meet increasing demand from all corners of the globe. It continues to appeal to consumers in countries such as the US and France and is being enjoyed by younger professionals in newer markets.

Export volumes rose 19% to the equivalent of 354 mil-lion litres of pure alcohol.