Universal Corp closed its processing plant in Nyíregyháza, Hungary, to concentrate handling of Hungarian tobaccos at its Italian facilities, the US-based leaf merchant said.

“This change will yield economies of scale for our Europe region,” said Domenico Cardinali, Universal’s managing director for the region. Affected employees will receive a settlement. “Universal continues to be committed to the production and purchasing of Virginia flue-cured and burley tobaccos grown in Hungary and intends to maintain its traditionally strong market presence in the country,” the company said.