Japan Tobacco Plans Closure of Hainburg Factory in Austria
OREANDA-NEWS. May 05, 2011. Japan Tobacco Inc. (JT) (TSE: 2914) announced that for the purpose of developing the manufacturing structure with greater efficiency in the company’s international tobacco business, we have formalized intent to close the Hainburg factory, followed by the commencement of consultations with the local works council.
Production in the Hainburg factory is planned to be ceased between the end of 2011 and the beginning of 2012. In connection with this, some of the Vienna based administrative functions are also anticipated to be rationalized. Approximately a total of 320 jobs are planned to be affected by the rationalization. In accordance with the planned closure of the Hainburg factory, we are examining transfer of some of the manufacturing capability to other factories in the European Union, such as to the Gostkow factory in Poland and to the Bucharest factory in Romania.
Following the planned Hainburg factory closure, the number of factories in our international tobacco business will be 28.
The effects of this plan on our financial performance have not been confirmed at present.
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