Situated at the west end of Dunnet Bay, the Castletown Mill is a large, traditional stone-built water-powered grain mill, which dates from the early to mid-19th century.

Under the plans of family-run Dunnet Bay Distillers the site will be transformed into the home of Stannergill whisky, the latest addition to its portfolio, which already includes Rock Rose Gin and Holy Grass Vodka.

The new 300,000 sq ft facility, which is set to open by late summer 2025, will also help to boost the local economy by hiring 12 additional staff for various operational and seasonal roles.

Martin Murray, managing director at Dunnet, said: “We’re thrilled to have HSBC’s continued support as we embark on this next chapter. This expansion will allow us to create more jobs, restore a piece of our local heritage, and continue growing our presence in international markets.

“The restoration of the mill is particularly meaningful to us as it represents both our commitment to the community and our dedication to preserving local history. We look forward to sharing this journey with our loyal customers as well as welcoming new ones.”

Tim Laundon, relationship director at HSBC UK, said: “At HSBC UK, we are committed to supporting local businesses like Dunnet Bay Distillers.

“Its dedication to community responsibility aligns perfectly with our values. We are excited to see the positive impact its expansion will have on the local economy and the historic preservation of the mill.”

The distillery’s products are well-established in 20 key markets, including Germany, the USA, and Southeast Asia – and are also available restaurants and supermarkets. The business has already received its first order from China and plans to begin exporting to the Philippines.