Netherland: PMI in Talks to Close Bergen op Zoom Factory

Source from:  Tobacco Journal International  04/08/2014

Philip Morris International (PMI) plans to end cigarette production at Bergen op Zoom in response to falling European sales and a negative regulatory climate, the company said.
 
About 1,230 of 1,371 jobs are endangered at the factory, which PMI describes as its largest in terms of production capacity. PM Holland (PMH) has begun talks with the works council over shutting down cigarette production. Operations at the Expanded Tobacco Plants and Flavour Processing Centre would continue, the company said.

"The severe decline in the tax-paid EU cigarette market has led to today's (4 April) regretful announcement in Bergen op Zoom. While the decline is partially driven by societal and economic factors, PMI has consistently expressed its concern over the negative impact of excessive fiscal and regulatory policies, which create a prolific environment for the criminal organizations involved in the illegal cigarette trade. Unfortunately, new regulations affecting the industry such as the recently agreed EU Tobacco Products Directive do nothing to address this growing problem," said Drago Azinovic, president for the EU region at PMI. Enditem