Imperial Tobacco to close Britain's last cigarette factory with the loss of more than 500 jobs
The last cigarette factory in Britain is closing with the loss of more than 500 jobs.
Imperial Tobacco, whose brands include Golden Virginia and Lambert & Butler, said it plans to shut its plant in Nottingham where it has 540 staff – nearly a third of its UK workforce.
The move will bring to an end cigarette production in Britain with the last remaining UK factory the Gallaher site in Lisnafillan in Northern Ireland.
Imperial Tobacco: Maker of Golden Virginia and Lambert & Butler plans to shut its plant in Nottingham
Bristol-based Imperial is also closing sites in France including its factory in Nantes and its research and development facility in Bergerac – taking the total number of job losses to 900.
The company said cigarette production in Europe is declining due to ‘tough economic conditions’ as well as increased regulation, higher taxes and smuggling.
Chief executive Alison Cooper said: ‘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.’
She said the plans were part of an ongoing drive to save £300million a year from September 2018.
Tobacco companies have suffered years of falling sales in developed markets such as Europe as smokers give up or cut back in the face of higher taxes, smoking bans and increased awareness of health problems.
Imperial’s Nottingham factory, which dates back to 1877, has the capacity to make 36billion cigarettes a year but will only produce 17billion in 2014, the company said. The Nantes site can make 21billion cigarettes a year but will only produce 9billion.
The company, which has 46 manufacturing sites and 35,000 staff in 160 countries, closed a cigar factory in Bristol in 2010.
The GMB union, which represents tobacco workers in Nottingham, said the announcement was a devastating blow to the workforce and the city’s economy.
Union official Chris Needham said: ‘GMB will oppose this closure as we believe the work of producing 17billion cigarettes in Nottingham each year is being migrated east to the Polish factory as a cynical ploy to increase profits and for no other reason.
‘This company made no less than £3.18billion profits last year and to make even more money it is simply walking away from Nottingham. This is not acceptable.’ Imperial shares rose 7p to 2,481p.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Dean Dunham: Entitled to comparable replacement concert tickets?
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Land Rover unveil newest all-electric Range Rover SUV
- Blue Whale fund manager on the best of the Magnificent 7
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mini Cooper SE: The British icon gets an all-electric makeover
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Volvo's Polestar releases new innovative 4 digital rearview mirror
- Mercedes has finally unveiled its new electric G-Class
- BBVA goes directly to shareholders as it steps up bid for...
- Vodafone told to boost security as £15bn Three merger is...
- Cameron left red-faced as Greensill sues Government over...
- SMALL CAP MOVERS: Light Science Technologies sales flourish
- Takeover target Wood Group hit by slump in revenues as...
- How criminals could use AI to scam Britons - and what can...
- Bank of England paves way for Britain to cut interest...
- BUSINESS LIVE: UK GDP grows 0.6%; IAG profits take off;...
- Should the Bank of England have cut interest rates...
- My favourite 20 new cars for under £20,000 - by the...
- BA owner IAG profits climb more than sevenfold
- ITV hopes for summer ad boom as it continues to reel from...
- Rightmove expects weaker ad revenue growth as more...
- Bailey pulls his punches on interest rates yet...
- MARKET REPORT: North Sea giant Harbour closes in on £9bn...
- Some estate agents only put forward offers from buyers...
- Families with TWO retired generations will surge to one...
- My uncle has £14,000 in Dart Charge fines despite trying...