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Philip Morris to close Australia cigarette factory | Philip Morris to close Australia cigarette factory |
(about 3 hours later) | |
Tobacco giant Philip Morris says it will cease production of cigarettes at its factory in Moorabbin, Australia. | Tobacco giant Philip Morris says it will cease production of cigarettes at its factory in Moorabbin, Australia. |
The closure of the factory, which has been in operation for nearly 60 years, will lead to a loss of 180 jobs. | The closure of the factory, which has been in operation for nearly 60 years, will lead to a loss of 180 jobs. |
The company said Australia's regulation regarding cigarette production was a factor in its decision. | |
Philip Morris said all cigarette production for the Australian market would be moved to its plant in South Korea. | Philip Morris said all cigarette production for the Australian market would be moved to its plant in South Korea. |
"This is an extremely difficult decision, and devastating news for all of our employees," said John Gledhill, Philip Morris's managing director for Australia, New Zealand, and the Pacific Islands, in a statement. | "This is an extremely difficult decision, and devastating news for all of our employees," said John Gledhill, Philip Morris's managing director for Australia, New Zealand, and the Pacific Islands, in a statement. |
The company said that it had been unable to increase exports as the domestic demand for cigarettes in Australia gradually declined over the past few years. | The company said that it had been unable to increase exports as the domestic demand for cigarettes in Australia gradually declined over the past few years. |
It blamed the export difficulties on the introduction of fire safety requirements for Australian-made cigarettes in 2010, which forced the plant to make cigarettes that didn't match consumer preferences elsewhere. | It blamed the export difficulties on the introduction of fire safety requirements for Australian-made cigarettes in 2010, which forced the plant to make cigarettes that didn't match consumer preferences elsewhere. |
"With any significant export opportunity restricted by Australian government regulations, our Moorabbin factory is significantly underutilised, operating at less than half of its currently installed capacity," said Mr Gledhill. | "With any significant export opportunity restricted by Australian government regulations, our Moorabbin factory is significantly underutilised, operating at less than half of its currently installed capacity," said Mr Gledhill. |
"Regrettably, factors beyond our control prevent us from fully utilising the facility, and accordingly it's been identified for closure." | "Regrettably, factors beyond our control prevent us from fully utilising the facility, and accordingly it's been identified for closure." |
In 2012, Australia became the first country in the world to introduce "plain packs", which bans all company logos and colours from packets, which must instead display graphic health warnings. | In 2012, Australia became the first country in the world to introduce "plain packs", which bans all company logos and colours from packets, which must instead display graphic health warnings. |
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