90 jobs up in smoke as cigarette factory closes

JUST nine months after the smoking ban was introduced, Imperial Tobacco yesterday announced the closure of its cigarette factory in Dublin with the loss of 90 jobs.

The €20 million John Player cigarette production and distribution facility at Park West was opened less than a year ago.

Shocked workers asked management at a lunchtime meeting yesterday if the move was a response to the introduction of the smoking ban last April. However, the company last night insisted there was no link to the ban. A spokesperson said the closure will enable Imperial to save about €4m a year from 2006 and was part of a worldwide restructuring plan.

Department of Finance figures show 1.1 billion fewer cigarettes will be sold this year, costing the Exchequer €128m in lost excise duty. The Imperial Tobacco factory had the capacity to produce 1.5 billion cigarettes a year.

Imperial sales in Ireland have fallen by 10%, a loss of 200 million cigarette sales. The company has a 25% share of the Irish market.

SIPTU branch secretary Anne Speed said workers were shocked by the decision. “We believe there will be a continuing need for a distribution service in Ireland. Management has also indicated it will seek to contract out the last remaining element of distribution to a third party but we have told them that we will not agree to such a move.”

Cigarette production is to be transferred to Nottingham, where the company employs 1,000 people.

“This decision was announced by Imperial Tobacco Group following an extensive and ongoing review of its global manufacturing portfolio, in order to enhance productivity and improve operational efficiencies,” the company said.

Imperial’s Tullamore factory, where 125 people are employed in the production of loose tobacco products, is not affected. Some 58 workers employed at head office in Park West will keep their jobs but are expected to move to new premises after production ceases next January.

In 2001, Imperial Tobacco closed the Cadena Cigar factory in Tallow, Co Waterford, with the loss of 68 jobs.

Meanwhile, the Office of Tobacco Control (OTC) said yesterday that in the six months after the smoking ban was introduced, over 94% of premises inspected were compliant, down from 97% in April.