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Japan Tobacco to relocate cigarette production from Austria to Poland and Romania


2011-05-10



Japan Tobacco International (JTI), the world’s third-biggest tobacco manufacturer, plans to close down its cigarette factory in Hainburg in Austria and to move the operations to two plants in Central Europe: in Gostkow Stary near Lodz and in Bucharest, romania.insider.com reported. The relocation is expected to take place by the end of the year.

The Hainburg factory has the capacity to make 10 billion cigarettes a year. It produces brands such as Benson&Hedges or Memphis.

Japan Tobacco built the Gostkow plant in 2009 at a cost of $100m (approx. €70m), creating more than 400 jobs. The company said at the time that its initial annual capacity of 5.5 billion cigarettes would rise to more than 20 billion in 2011. The factory is located near an existing tobacco factory which JTI acquired from Gallaher of the UK as a result of a merger that propelled it to number three cigarette maker in the world.



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