Philip Morris will close cigarette plant in Netherlands
American manufacturer of cigarettes Philip Morris International Inc. has declared that will close manufacturing object in Netherlands on the background of weakening demand on traditional tobacco products in Europe.
As Philip Morris informed, closure of its biggest plant in Bergen-op-Zoom will cause reduction of 1230 employees or 90% of labor force on this object. Company will transfer manufacturing process to other European plants with reserve facilities.
These plans should be approved by supervisory council of Philip Morris Holland and Company with discuss them with labor unions.
Tobacco companies face serious problems with fall of demand on cigarettes in Europe because of increased care about health, weak economy and growth of taxes on tobacco products.
According to Philip Morris sales volumes for the last four years have reduced by 20% and recovery is "very unlikely".
Philip Morris has also accused of this new law of European Union about tobacco consumption control that will prohibit sale of flavored cigarettes and will appoint to place bigger warnings inscriptions on packs. Toughening of regulation creates favorable conditions for "criminal organizations involved in illegal trade of cigarettes", the Company has noted.
Earlier Philip Morris has informed that will stop manufacturing of cigarettes in Australia to the end of the year, terminating 60 year history of manufacturing in Melbourne. It may cause loss of 180 working places. Manufacturing of cigarettes will be transferred to South Korea.
Manufacturer of Marlboro and L&M cigarettes at the end of previous year has declared that will enter fast developing market of electronic cigarettes and will hasten plans of launching other alternative products. Company also intends to widen presence on developed markets on the background of further reduction of sales volumes of cigarettes in many developed countries.