JTI is to close its cigarette factory, in Ballymena, Northern Ireland.
The tobacco manufacturer said the plant, which employs 877 people, was to shut as part of a proposed restructure of its manufacturing facilities.
“The challenging economic environment, excise tax pressure coupled with illegal trade has triggered industry volume contraction in a number of key European countries,” JTI said in a statement.
“This is compounded by the need to comply with legislation, including the revised EU Tobacco Products Directive (TPD2), which will significantly reduce the number of pack formats to be produced for various markets. This inevitably has led to the need to review JTI’s manufacturing operations.”
Its Wervik factory in Belgium has also been earmarked for closure. JTI said production would move to other facilities “potentially in Poland and Romania.”
“Consultation with employees’ representatives and the European Works Council will be appropriately conducted and support for affected employees will be discussed as part of the consultation process,” JTI added.
“This restructuring proposal will allow JTI to optimise its operations, strengthen its competitive position and achieve its financial commitments in a challenging operating environment. Its implementation is to be phased, recognizing the needs of each country, with factory closures completed between 2016 and 2018.”
News of the closure follows Imperial Tobacco’s announcement in April this year that it was closing its Nottingham factory and relocating production to Poland. The closure, which will be completed by March 2016, will see the loss of 540 jobs.
It means the closure of JTI’s Ballymena site will bring an end to cigarette production in the UK.
No comments yet