15th Apr 2014 10:39
LONDON (Alliance News) - Imperial Tobacco Group PLC Tuesday said that it will be closing its cigarette factories in Nottingham and Nantes in France, losing a total of 900 jobs in response to the downturn in cigarette sales in Europe.
The tobacco firm said that it plans to implement the European restructuring projects gradually over the next two years, and supported its cost optimisation programme, which it expects will deliver savings of around GBP300 million a year from September 2018 onwards.
"The proposed closures reflect declining industry volumes in Europe, impacted by tough economic conditions, increasing regulation and excise and growth in illicit trade," the company said.
Imperial Tobacco said that with the downturn in cigarette sales in Europe, its Nottingham and Nantes productions sites are now utilising less than half their manufacturing capacity.
Shares in the tobacco firm were up 0.9% at 2,495.00 pence per share Tuesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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