Japan Tobacco plans to close its Linz factory

Published on Wed, 03 October 2007 6:10 pm

Japan Tobacco plans to close its Linz factory by the end of 2009. This factory is located in Austria and there 300 employees work. Annual production of the factory is about 20 billion cigarettes. Linz is the second factory that JT plans to close.

Japan Tobacco is the world's third-largest cigarette maker, 50% owned by Japan government and producer of such brands as the Benson & Hedges Silk Cut, Mayfair and Memphis, Mild Seven and owns the Camel, Winston and Salem cig brands outside the United States.

”This follows an extensive review of the manufacturing operations in Austria conducted as part of the integration plan for Gallaher, which was acquired by JT in April,” Japan Tobacco said in a statement in Tokyo.

Linz is the second factory that JP Tobacco plans to close. So, the third largest producer will have 31 factories worldwide, instead of 33.

In September, the company announced closing of another its factory, Cardiff, located in Wales. This factory produces 330 million cigars annually and numbers 184 employers. As JT said, this factory would finish its operations in September 2009.

JP Tobacco will focus all its tobacco productions in the Hainburg factory that produces JTI’s strategic Global Flagship Brands, including Camel and Winston. So, this factory will be promoted as a mid-size factory with higher productivity.