Linz Factory Another Casualty of Gallaher Sale

Source from:  tr.itsmyiq.com Sep 28, 2007 09/29/2007

JT International (JTI) plans to close its factory at Linz, Austria, by the end of 2009. The announcement of the closure, made by parent company, Japan Tobacco (JT), earlier today, mirrors a similar announcement about JTI's Cardiff, UK, factory, made yesterday. JT said the decision to close the Linz factory had been made following an extensive review of the manufacturing operations in Austria conducted as part of the plan for integrating Gallaher into JTI. Gallaher was acquired by JT in April. The Linz factory was established in 1935, and today manufactures about 20 billion cigarettes annually, including Memphis and Benson & Hedges. JT said the plans would 'affect' about 300 jobs in Linz and Vienna. All production in Austria would be focused on the Hainburg factory, which would be upgraded to a mid-size plant producing JTI's strategic Global Flagship Brands, including Camel and Winston, JT added. Employees of the Linz and Hainburg factories were advised of the company's plans today, when consultations were started with relevant employment organizations. JT said that as was standard practice with JTI, all affected employees would be offered 'fair and generous treatment'. The closures of the Cardiff and Linz factories will reduce the number of JTI plants worldwide to 31. Enditem