Conwood, the smokeless-tobacco subsidiary of Reynolds American, is preparing for its second major production expansion in less than two years.

Officials said that the company is moving ahead with a potential USD 115 million (EUR 86.8 million) expansion in Clarksville, Tennessee, which includes the purchase of a building. The expansion would add up to 25 jobs to Conwood's existing work force of 95 in Clarksville.
Tripp Wilson, the company’s general counsel, said that Conwood hopes to complete the purchase of the 192 acres and the building by late spring.
Reynolds bought Conwood for USD 3.5 billion in May 2006. It is the second-largest smokeless tobacco manufacturer in the country, most known for its Kodiak and Grizzly moist snuff brands. The company posted a ten-per-cent increase in operating profit in the third quarter, with its Grizzly brand delivering double-digit volume growth.
Conwood recently completed the construction of a USD 30 million, 88,000-square-foot plant next to its existing Taylor Brothers building. In addition to making the Conwood brands at the new plant, Reynolds also makes Camel snus. (pi)