Imperial Tobacco will close two European cigarette factories over the next two years to boost competitiveness in a market where volume is declining, the company said.
About 900 jobs may be lost by shuttering a cigarette plant and distribution centre in Nottingham, UK, and a factory in Nantes, the Bergerac R&D centre and support functions in Paris, France.
“The proposed closures reflect declining industry volumes in Europe, impacted by tough economic conditions, increasing regulation and excise and growth in illicit trade. Production has been affected at the Nottingham and Nantes sites, which now utilise less than half their manufacturing capacity”, Imperial said.
Talks with works councils and trade unions have begun, the company said.
“These projects are an essential part of securing the sustainable future of the business”, said Chief Executive Officer Alison Cooper. “The prospect of job losses is always regrettable and we will be doing all we can to support employees and ensure that they are treated in a fair and responsible manner.”