Altria Announces Cigar, Smokeless Plant Closures

Altria will consolidate manufacturing in its cigar and smokeless product businesses by closing a cigar making and packing plant in Pennsylvania and a smokeless product site in Illinois, the company said.

Savings of around USD 50 million (EUR million) per annum are projected by the end of 2018, Altria said. Pre-tax consolidation costs were put at USD 150 million.

Scheduled for shutdown are the John Middleton facility in Limerick, Pennsylvania and the US Smokeless Tobacco manufacturing centre in Franklin Park, Illinois. Cigar production will be shifted to the manufacturing centre in Richmond, Virginia.

Manufacturing at Franklin Park will be shifted to an existing site in Nashville, Tennessee, and to Richmond, Altria said.Franklin Park employs more than 270 people, according to the US Smokeless Tobacco website. USSTC brands Copenhagen and Skoal moist-snuff are market leaders in the US. Employee information for John Middleton, maker of Black & Mild cigars, was not immediately available. 

Employees at both facilities will be given the opportunity to transfer to available positions elsewhere, or offered separation packages, Altria said.