PMI to shut two German factories amid falling European smoking demand

Oct.30.2024

Philip Morris International(PMI) plans to close two tobacco factories in Germany starting in 2025, citing declining smoker numbers in Europe, and signals the trend will continue in the coming years.

Philip Morris International (PMI) announced plans to close its two factories in Berlin and Dresden, Germany, due to a decline in the smoking population in Europe, according to an October 29 report in La Nacion.

The factory closures will affect 372 workers, 98 at the Berlin plant and 274 at the Dresden plant, according to a company spokesman.

"We plan to negotiate with union and works council members to reach a fair and socially acceptable solution."

A tobacco processing facility in Berlin is scheduled to close in the first half of 2025. Meanwhile, a cigarette manufacturing plant in Dresden will close in mid-2025.

The company explained that there has been a significant decline in demand for cigarettes in Europe in recent years, and this trend is expected to continue in the coming years.

"If the plan to close these two factories next year goes ahead, there will be no manufacturing operations in Germany. However, the German subsidiary's headquarters near Munich will continue to operate."

References:

[1] Philip Morris cerrará sus dos fábricas en Alemania por falta de fumadores en Europa

Also Read:

[1] PMI Q3: Smokeless products account for 38% of net sales, says The Times

[2] IQOS Iluma cartridges to feature support messages as Philip Morris highlights vulnerable groups

[3] Philip Morris Bulgaria commits to carbon neutrality by 2040

[4] PMI launches IQOS pilot programme in Austin, Texas

[5] 30 Years of Innovation: Philip Morris International's Transformation Journey

[6] PMI's IQOS Revenue Surpasses Marlboro, Aiming for 100B sales

[7] Illegal Tobacco Trade in UK: Rising Concerns and Solutions

#Europe #Traditional tobacco #Germany #Major companies

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