BAT and PMI Collaborate to Produce Cigarettes in Switzerland

BAT and PMI Collaborate to Produce Cigarettes in Switzerland
Swiss media Le Temps reports that British American Tobacco's Swiss subsidiary has reached a production agreement with Philip Morris International.

Swiss media outlet Le Temps reported on December 1st that the Swiss subsidiary of British American Tobacco (BAT) has revealed a collaboration agreement with Philip Morris International (PMI). According to the agreement, PMI will produce cigarettes for BAT at their factory located in the western Swiss city of Neuchâtel.


In its statement, BAT pointed out that this agreement is specifically targeted towards the domestic market in Switzerland. Reports suggest that due to insufficient production capacity at BAT's factories in Switzerland to meet market demands, the company has opted to collaborate with a rival factory. This is a common practice in the world of multinational corporations.


British American Tobacco (BAT) has announced that only a portion of its production in Neuchâtel will be dedicated to the Swiss market, while the remaining output, as well as previously exported goods, will be handled by other factories within the BAT Group. As part of the agreement between the two tobacco giants, six new positions will be added to the Boncourt factory (BAT's Switzerland-based facility).


This summer, British American Tobacco Switzerland announced that they would not completely exit Boncourt's operations, but would continue to retain warehouses and a shipping department there, providing approximately 15 jobs. The company's headquarters will also remain in Jura canton. As of December 14th, 2022, when the closure of the factory was announced, it employed a total of 220 staff members.


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