Imperial tobacco calls time on last uk factory

Imperial Tobacco is stubbing out much more than one hundred years of manufacturing in Britain right after it announced the closure of its only remaining UK plant, in Nottingham, to shift production to less expensive facilities in Poland and Germany.

The Bristol primarily based tobacco corporation, the world&rsquos fourth biggest by marketplace share, plans to close its factory in Nottingham, where it employs 540 men and women, as element of a European restructuring programme created to assist it save &pound300m a year from September 2018.

Imperial is the only tobacco company to nonetheless manufacture cigarettes in mainland Britain Japan Tobacco International has a plant in Ballymena in Northern Ireland, exactly where it employs 900 people.

Imperial said the Nottingham factory, which ten years ago employed as several as 1,000 staff, is operating at significantly less than half its 36 billion cigarettes a year capacity due to declining tobacco consumption in the UK.

The group added that forthcoming European regulations, which will ban the sale of packs of 10 cigarettes and 30g packs of rolling tobacco, would also have an effect on production.

Brands made at the plant in Nottingham, like Lambert and Butler and Embassy No 1, will now be manufactured in Germany and Poland and imported to the UK market place.

While Imperial&rsquos present facilities in Nottingham, on Thane Road, only date back to 1972, the company&rsquos ties with the city can be traced back to 1877 when John Player purchased a smaller cigarette manufacturing enterprise in Broad Marsh, Nottingham. Players was a single of 13 family run enterprises from which Imperial was born in 1901.

A spokesman for Imperial mentioned the enterprise will undertake a consultation course of action and expects to close the factory &ldquoprogressively&rdquo more than the subsequent two years.

The tobacco giant also plans to shut a factory in Nantes in France, exactly where it employs 320 men and women, as element of the European restructuring programme, which will claim 900 jobs in total. The Nantes factory has also suffered from declining production it will only produce 9bn cigarettes this year but has capacity to manufacture 21bn.

A investigation and improvement facility in Bergerac in France is also below threat, even though the group stated 80 new roles could be designed in Paris under plans to restructure its sales force and support operations in the French capital.

Alison Cooper, chief executive of Imperial Tobacco, stated &ldquoThese projects are an vital element of securing the sustainable future of the enterprise. The prospect of job losses is often regrettable and we will be doing all we can to help employees and ensure that they are treated in a fair and accountable manner.&rdquo

Unite national officer, Rhys McCarthy, named the closure &ldquoshocking&rdquo and mentioned it will have a devastating influence on the local neighborhood.

&ldquoWhat we had been not expecting was the wholesale closure of the Nottingham web site and an finish to Imperial Tobacco manufacturing cigarettes in the UK and moving production to eastern Europe.&rdquo

Read More Telegraph

Update 1-uk stocks-factors to watch on april 14

(Adds futures, company news)

LONDON, April 14 (Reuters) Britain’s FTSE 100 index is seen opening lower on Monday, with June futures for the index down 0.5 percent by 0621 GMT, following further declines on Wall Street and as tensions in Ukraine mounted. For more on the factors affecting European stocks, please click on

The FTSE 100 index fell 80.27 points, or 1.2 percent, to 6,561.70 points on Friday, with technology stocks among the hardest hit as the UK’s benchmark equity index suffered its biggest weekly loss in a month with a 2 percent drop.

That leaves the index, which got close to its best level since early 2000 in January, down about 2.8 percent this year.

U.S. stocks sank on Friday, with the biotech and other momentum stocks again dragging the Nasdaq Composite down 1.3 percent, to close at 3,999.734, falling below the 4,000 mark for the first time since early February.

Ukraine gave pro Russian separatists a Monday morning deadline to disarm or face a «full scale anti terrorist operation» by its armed forces, raising the risk of a military confrontation with Russia, while the United Nations Security Council held an emergency session on Sunday night to discuss the crisis.

GLENCORE XSTRATA Glencore Xstrata has sold its interest in the Las Bambas copper mine in Peru to a Chinese consortium in a $6 billion cash deal, making it one of China’s largest mining acquisitions in recent years.

ANGLO AMERICAN Anglo American is seeking compensation from Venezuela at a World Bank tribunal over the 2012 cancellation of mining concessions by late president Hugo Chavez’s government.

GLAXOSMITHKLINE The drugmaker is facing a criminal investigation in Poland for allegedly bribing doctors to promote its asthma drug Seretide, BBC Panorama reported.

BANKS Europe’s largest banks cut their staff by another 3.5 percent last year and the prospect of a return to pre crisis employment levels seems far off, despite the region’s fledgling economic recovery.

Separately, the European Union will sign off on a slew of major reforms this week to allow failing banks to be wound down without public money, clearing its desk before elections in May that may lead to a slower pace of legislation.

Also, British investors have called upon investment banks to stick closer to lock up agreements on sales of company shares after a major transaction, saying it would ensure more stable markets.

British home owners are increasingly upbeat about the housing market and are more willing to sell than at any time since April 2011, a survey by mortgage lender Halifax showed.

AEROSPACE AND DEFENCE FIRMS Britain’s aerospace and defence industries warned on Sunday that the sector could lose its global competitive edge as a result of Scotland’s bid for independence, which is due to be decided by a referendum later this year.

Britain is home to a number of major aerospace and defence industry firms such as BAE Systems, Cobham and Babcock.

ROYAL DUTCH SHELL, BP Royal Dutch Shell and BP have signed deals to supply Kuwait with liquefied natural gas over the next few years, a Kuwait Petroleum Corp. official was quoted as saying.

TESCO Tesco is expected to report a 6 percent fall in annual profit this week, a second straight decline which would pile the pressure on boss Phil Clarke who is struggling to turn around Britain’s biggest retailer.

PUNCH TAVERNS Britain’s second biggest pubs group has brought in an independent corporate restructuring expert to aid long running discussions over its 2.3 billion pound ($3.85 billion) debt mountain, the Telegraph reported.

CIGARETTE FIRMS Certain sections of the World Health Organisation are keen to categorise e cigarettes as tobacco and regulate them as normal cigarettes, according to leaked documents seen by the Financial Times.

Also, South Korea’s state health insurer said it was seeking an initial 53.7 billion won ($51.9 million) from three tobacco companies, including the local units of British American Tobacco , to offset treatment costs for diseases linked to smoking.

AGGREKO The world’s leading temporary power provider aims to double its output in Ivory Coast to around 400 megawatts within two years to meet demand from the country’s rapidly growing economy, a senior company official said.

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> Other business headlines Multimedia versions of Reuters Top News are now available for 3000 Xtra visit BridgeStation view story .134 For more information on Top News visit ($1 0.5980 British Pounds) (Reporting by Tricia Wright, additional reporting by Blaise Robinson editing by Atul Prakash)