Japan Tobacco Plans to Close Factory in Austria

Source from:  beta.malaysia.news.yahoo.com Reuters - Sept 29 09/30/2007

Japan Tobacco Inc , the world's third-larget cigarette maker, plans to close a factory in Austria as part of its effort to consolidate output following its acquisition of Gallaher. Japan Tobacco said it would close its Linz factory in Austria by the end of 2009, affecting 300 jobs. The factory makes the Benson & Hedges and Memphis brands and has an annual production volume of about 20 billion cigarettes. "This follows an extensive review of the manufacturing operations in Austria conducted as part of the integration plan for Gallaher, which was acquired by JT in April," Japan Tobacco said in a statement issued late on Friday in Tokyo. The announcement followed one earlier in the week on its plan to close its Cardiff factory in Wales in September 2009. The closures of the Linz and Cardiff plants would cut the number of Japan Tobacco's factories to 31 worldwide. Japan Tobacco, which is 50 percent owned by the Japanese government, makes Mild Seven cigarettes and owns the Camel, Winston and Salem brands outside the United States. Gallaher's brands include Benson & Hedges, Silk Cut and Mayfair in Britain. Japan Tobacco said production in Austria would be focused in its Hainburg factory, which will be upgraded to a mid-sized plant as part of the move. Enditem