Imperial transfers production to Poland

Imperial Tobacco announced a reshuffle in its European operations today, as it looks to move production from Germany to the cheaper Eastern European region.

The Embassy and Lambert & Butler cigarette maker, said it would relocate the production of about 10bn cigarettes for Central and Eastern Europe from Germany to Poland.

Production will be reduced at the Berlin factory, said Imperial, though it will continue to manufacture cigarettes for the German market, adding that the facility remains an integral part of the group’s operations.

The restructuring, which should be completed in about a year, will result in the loss of about 200 jobs though will enhance efficiencies and result in lower overall costs in the region.

Cigarette companies are struggling to cope with the decline in demand for premium branded cigarettes in the face of rising taxation by government’s.

Rival British American Tobacco announced in July that it was effectively pulling out of the UK, with the closure of a number of factories and transferring production overseas to Singapore and Korea.

(Source: ShareCast)

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