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Nottingham cigarette factory closure threatens over 500 jobs Nottingham cigarette factory closure threatens more than 500 jobs
(about 1 hour later)
The last cigarette factory in mainland Britain is due to close as Imperial Tobacco prepares to shut its Nottingham plant and two other sites in France, putting nearly 1,000 jobs at risk.The last cigarette factory in mainland Britain is due to close as Imperial Tobacco prepares to shut its Nottingham plant and two other sites in France, putting nearly 1,000 jobs at risk.
Imperial employs 540 people in its Nottingham factory, where it makes Lambert & Butler, Embassy, Regal, Superkings (known as John Player) and JPS (John Player Special).Imperial employs 540 people in its Nottingham factory, where it makes Lambert & Butler, Embassy, Regal, Superkings (known as John Player) and JPS (John Player Special).
Imperial owns the business founded by John Player in Nottingham, who started out by selling pre-packed tobacco from his shop – until then smokers had to buy paper and tobacco separately and roll their own – and bought a his first Nottingham factory in 1877 that produced pipe and chewing tobacco as well as handmade cigarettes.
John Player later became one of the 13 companies that came together as Imperial.
The planned closure of Imperial's last Nottingham factory and distribution centre means there will be no cigarette manufacturing left in mainland Britain. The only other remaining factory is run by Japan Tobacco International in northern Ireland.The planned closure of Imperial's last Nottingham factory and distribution centre means there will be no cigarette manufacturing left in mainland Britain. The only other remaining factory is run by Japan Tobacco International in northern Ireland.
Imperial, which has 46 factories and 35,000 employees worldwide, also plans to close its Nantes factory, which employs 320 people and makes Gauloises, Gitanes and JPS. A further 120 jobs could be lost by the closure of its Bergerac research & development site, although 80 new roles could also be created. Imperial said the restructuring forms part of plans to save £300m a year from September 2018. Imperial, which has 46 factories and 35,000 employees worldwide, also plans to close its Nantes factory, which employs 320 people and makes Gauloises, Gitanes and JPS. A further 120 jobs could be lost by the closure of its Bergerac research and development site, although 80 new roles could also be created. Imperial said the restructuring forms part of plans to save £300m a year from September 2018.
Ten years ago, Imperial employed 1,000 people in Nottingham.Ten years ago, Imperial employed 1,000 people in Nottingham.
The tobacco giant blamed declining industry sales in Europe, due to tough economic conditions, "excessive" duty increases and a growing blackmarket trade. This has had knock-on effects on Nottingham and Nantes, which now use less than half their manufacturing capacity. Nottingham has capacity to make 36bn cigarettes a year but will only produce 17bn this year while Nantes, with a capacity to make 21bn cigarettes, will only make 9bn. Imperial wants to close both the factory and the distribution centre, relocating production to Germany and Poland and outsourcing distribution. That will leave nearly 1,200 people working at its newly built head office in Bristol. Imperial owns the business founded by John Player in Nottingham, who started out by selling pre-packed tobacco from his shop – until then smokers had to buy paper and tobacco separately and roll their own – and bought a his first Nottingham factory in 1877 that produced pipe and chewing tobacco, as well as handmade cigarettes.
John Player later became one of the 13 companies that came together as Imperial.
The tobacco company blamed declining industry sales in Europe, due to tough economic conditions, "excessive" duty increases and a growing black market trade. This has had knock-on effects on Nottingham and Nantes, which now use less than half their manufacturing capacity. Nottingham has capacity to make 36bn cigarettes a year but will only produce 17bn this year while Nantes, with a capacity to make 21bn cigarettes, will only make 9bn. Imperial wants to close both the factory and the distribution centre, relocating production to Germany and Poland and outsourcing distribution. That will leave nearly 1,200 people working at its newly built head office in Bristol.
Imperial has told employees, works councils and trade unions about its plans. Chief executive Alison Cooper said: "These projects are an essential part of securing the sustainable future of the business. The prospect of job losses is always regrettable and we will be doing all we can to support employees and ensure that they are treated in a fair and responsible manner."Imperial has told employees, works councils and trade unions about its plans. Chief executive Alison Cooper said: "These projects are an essential part of securing the sustainable future of the business. The prospect of job losses is always regrettable and we will be doing all we can to support employees and ensure that they are treated in a fair and responsible manner."
Cigarette sales have been falling by about 2-3% a year in volume terms in western Europe, but this has been offset to some degree by growth in eastern Europe and emerging markets. The global tobacco market is predicted to be stable, thanks to population growth. Imperial has identified Italy, Greece, Russia, Turkey and the US as growth markets, while the UK, with its 10m smokers and where the company has a higher market share, is classed a returns market. Cigarette sales have been falling by about 2-3% a year in volume terms in western Europe, but this has been offset to some degree by growth in eastern Europe and emerging markets. The global tobacco market is predicted to be stable, thanks to population growth. Imperial has identified Italy, Greece, Russia, Turkey and the US as growth markets, while the UK, with its 10 million smokers and where the company has a higher market share, is classed a returns market.