Monday, May 31, 2010

2 cigarette plants closing as demand declines


Tobacco company Reynolds American said Friday it will close two cigarette plants — one in its headquarters city in Winston-Salem, N.C., and another in Puerto Rico — as it adjusts to declining demand for cigarettes.

The company said production of cigarettes like Camel and Pall Mall will start to shift to its largest facility in nearby Tobaccoville, N.C., this summer.

Workers at the Winston-Salem plant will transition to the other facility.In December, Reynolds offered buyouts to about 1,800 workers at the North Carolina manufacturing plants to cut costs.About 400 workers opted to take the offer.

Most of the reductions were scheduled to take place in 2010 and begin as early as January, and others will have release dates in early 2011. Reynolds said about 60 jobs in Puerto Rico will be eliminated in the consolidation.

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