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Tuesday 23rd of June 2009
July 13, 2005

BAT relocates production from UK to Asia


by Brian Turner
BAT relocates production from UK to Asia

British American Tobacco announced on Wednesday that it would close that plant and another in Dundalk, Ireland and relocate production that takes place in those facilities to Asia

BAT cited the fact that most of the 24 billion cigarettes made at its Southampton plant every year are exported to Asian markets as a main cost cutting consideration.

Last month, BAT had said that it would move 25 percent of its production at the Southampton plant to Singapore and Korea.

The closures will result in a loss of around 600 jobs, about 530 at Southampton and 66 at Dundalk.

BAT, which makes the Dunhill and Lucky Strike brands of cigarettes, hopes that profits will rise as a result of the relocation of the jobs and the cost cuts that move will bring.

The company’s position is that it makes economic sense to produce its product closer to where most of it is sold.

BAT sold 853 billion cigarettes in 2004, with especially strong performance in Russia, Pakistan, India, and Turkey.

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