Philip Morris International (PMI) will stop manufacturing cigarettes in Australia by the end of this year by closing its Moorabbin factory, a move the company said would eliminate 180 manufacturing jobs.

Located in a Melbourne suburb, the plant has been making cigarettes for nearly six decades but currently operates at less than half capacity, PMI said. Subsidiary Philip Morris Ltd (PML) made a substantial investment in Moorabbin between 2006-09 to service the regional export market. However the Australian government in 2010 imposed reduced-risk fire requirements on all locally produced cigarettes, a stipulation PMI said did not meet customer preferences in targeted export markets.
"Despite the introduction of plain packaging and the continued growth in illicit trade, PML’s volumes were stable in 2013. However, with any significant export opportunity restricted by Australian government regulations, our Moorabbin factory is significantly under-utilised”, said John Gledhill, managing director for Australia, New Zealand and Pacific islands. The Australian market will be supplied from Korea, PMI said.