British American Tobacco (BAT) is closing its operations in Chile, where the company employs about 1,000 people, in response to tougher tobacco control measures, the Associated Press said.

A menthol ban and larger cigarette pack warnings are among changes before the legislature that BAT Chile said would cost USD 400 million (360 million) in sales, according to the AP. A phased shutdown would start by letting go 20 per cent of the workforce. BAT has done business in Chile since 1909.