Japan Tobacco Inc. may close some European manufacturing facilities after taxes and illegal trade triggered an industry slowdown in a number of countries in the region.
JT¡¯s plants in Lisnafillan, Northern Ireland, and Wervik, Belgium, would shut under the plan, with production moving to other sites, potentially in Poland and Romania, the Tokyo-based company said Tuesday.
Some production in Germany would also be relocated, with about 1,100 full-time jobs affected across the European Union, it said.
¡°This restructuring proposal will allow JT to optimize its operations, strengthen its competitive position and achieve its financial commitments in a challenging operating environment,¡± the company said.
JT is cutting jobs and closing factories as the company restructures its domestic business amid a declining number of smokers and a shrinking population. Depreciating currencies in emerging markets are putting pressure on profit from the company¡¯s overseas tobacco business, which accounts for about half of JT¡¯s sales. European factory closures will be completed from 2016 to 2018, the company said.
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