Imperial Tobacco to cut 940 jobs in Europe

The world's fourth-largest tobacco firm, Imperial Tobacco, is to cut 940 jobs by closing its cigarette manufacturing operations in Hungary, Slovenia and Slovakia.

The group's filter production centre in Hungary is also set to close.

The company says the closures are part of a drive to tackle over-capacity and prepare for the enlargement of the European Union.

The closures will be complete by May 2004 and will result in a restructuring charge of £35m (€50m) for the year to Sept 2004 accounts.

The company expects annual savings of around £20m (€28m) from next year onwards.

The announcement follows last year’s closure of the Group’s cigarette factory in Cambodia, a facility in Meppel, Netherlands, and a warehouse distribution centre in Bristol, UK.

Following the closure of these operations in Hungary, Slovenia and Slovakia, the Group’s global manufacturing portfolio will consist of 32 facilities.

Imperial Tobacco makes West, Lambert & Butler and Embassy cigarettes and is listed on the FTSE100.

At 2.00pm today shares in the company were down 1.11%, or 12p to £10.73 on the news.