Imperial Tobacco To Close Factories In UK, France; To Cut 900 Jobs

(RTTNews) - British tobacco company Imperial Tobacco Group Plc (IMT.L, ITYBY.PK), Tuesday announced plans to close cigarette factories in Nottingham, UK and Nantes, France that will result in lay off of about 900 employees.

Imperial Tobacco indicated initiating number of restructuring process in Europe to improve its competitive position. The company in a statement said, "The proposed closures reflect declining industry volumes in Europe, impacted by tough economic conditions, increasing regulation and excise and growth in illicit trade."

The Nottingham factory and distribution center, which employ about 540 people, has capacity to make 36 billion cigarettes a year but will only produce 17 billion in 2014. Meanwhile, Nantes factory that employs around 320 people has capacity to make 21 billion cigarettes a year but will only produce 9 billion in 2014.

Chief Executive Alison Cooper said, "These projects are an essential part of securing the sustainable future of the business. 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."

A further 120 jobs could be affected by proposals to close the Bergerac research and development facility in Paris.

In London, Imperial Tobacco shares closed trading at 2,481.00 pence, up 0.28 percent.