ITALY: Closing Italian Tobacco Plants

Source from:  tobaccojournal.com 09/22/2004

US-based tobacco leaf trader Standard Commercial said on 17 September it would discontinue its tobacco processing operations in Italy. Standard Commercial said in a statement it expects to record a charge of between US$ 16 million and US$ 20 million in the quarter ending 30 September as a loss from discontinued operations. The charge will be composed primarily of non-cash expenses. The Wilson, North Carolina-based company said the facilities, which employ some 62 people, are expected to be closed by 31 March 2005. Chairman and CEO Robert E. Harrison said conditions in the Italian market had worsened and the euro had strengthened, hitting results, while projections indicated this trend would continue. Recent reform of the European Union's Common Agricultural Policy would affect tobacco production and costs too, adding to the impetus to close the plants. Enditem