29th Sep 2005 14:15
Imperial Tobacco Group PLC29 September 2005 IMPERIAL TOBACCO GROUP ANNOUNCES FURTHER RESTRUCTURING OF MANUFACTURINGOPERATIONS Imperial Tobacco Group today announced a further restructuring of itsmanufacturing operations as part of an ongoing review of its globalmanufacturing portfolio. The Group remains focused on improving efficiencies and reducing overall costsin order to strengthen its competitive position and address over-capacity. Today it announced the closure of its UK rolling papers factory in Treforest,South Wales, and the transfer of production to its larger papers plant inWilrijk, Belgium. The closure is expected to be completed within a year and will result in theloss of all 134 jobs at the Treforest plant, although there will be someredeployment opportunities. Employees and trade unions were informed of the decision today and theconsultation process with the relevant bodies is now underway. The restructuring is expected to generate annual cost savings of around £3million from the 2007 financial year. It is anticipated that there will be arestructuring charge of £7 million. David Cresswell, Imperial Tobacco Group Manufacturing Director, said: "Thisrestructuring further underlines our ongoing commitment to enhance productivity,improve operational efficiencies and reduce overall costs. "However, our immediate focus will be on supporting our employees during thisdifficult time. We have a highly skilled workforce in Treforest and we willensure that they are treated in a fair and responsible manner." There will be no impact on sales and marketing activities, or the quality andavailability of any Imperial Tobacco Group products as a result of therestructuring. Today's announcement follows several previous restructuring initiatives sincethe acquisition of Reemtsma in May 2002, including the closure of eight ImperialTobacco Group manufacturing sites. Last week, the Group announced a restructuring of its cigarette operations inEurope which will result in the loss of around 200 jobs in Berlin, Germany. Following the closure of the Treforest factory, the Group's global manufacturingportfolio will consist of 31 factories. ENDS Enquiries Alex Parsons Group Media Relations Manager Tel: +44 (0)117 933 7241 Simon Evans Group Media Relations Executive Tel: +44 (0)117 933 7375 John Nelson-Smith Investor Relations Manager Tel: +44 (0)117 933 7032 NOTES TO EDITORS Imperial Tobacco Group Imperial Tobacco Group is the world's fourth largest international tobaccocompany. The Group manufactures and sells a comprehensive range of cigarettes,tobaccos, rolling papers and cigars in 130 countries worldwide. It currently has15,000 employees and 32 manufacturing sites. Manufacturing Sites The rolling papers factory in Treforest has 134 employees and produced 23billion leaves in the last financial year. Treforest predominantly manufacturesRizla, the world's number one rolling papers brand, for a number of markets,including the UK. The rolling papers factory in Wilrijk has around 160 employees and produced 30billion leaves in the same period, again predominantly Rizla for a number ofmarkets. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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