Talks on proposed closure of cigarette company

Central Cigarette Company Limited, a subsidiary of British American Tobacco, said yesterday it will start consultations with employees and the General Workers' Union on the proposed closure of its factory in Bulebel, Zejtun.

Ronnie Abela, general manager, said the proposal was the result of an in-depth review of the future viability of manufacturing capacity in Malta.

The review was prompted by a recent announcement by British American Tobacco that its preferred future manufacturing strategy in Europe would concentrate manufacturing in two large hubs based in the EU region.

Mr Abela said: "The company very much regretted this outcome which we have worked hard over recent years to prevent.

"Regrettably, the cost of the finished manufactured product in Malta is uncompetitive when compared to the cost of the same product from other factories in the region, and the size and geographical location of our operations militate against us."

Mr Abela said the company was fully aware of its responsibilities to its employees and to other stakeholders and was committed to doing everything possible to mitigate the impact of the proposed closure. The company reassured its customers that such developments have no impact whatsoever on the future quality and supply of its products, Mr Abela said.

Contacted about the company announcement, Mr Abela was asked whether the proposal would lead to redundancies, to which he replied that this matter was "subject to discussions".

Central Cigarette Company, which started production in Malta in 1972, employs 119 workers, 70 of whom are engaged in manufacturing.

Mr Abela said Central Cigarettes Company would continue with its distribution and sales operations.

The company had announced the review earlier this year when it said the move was the result of a strategy launched by British American Tobacco's Europe region to concentrate production in its larger factories.

The factory in Zejtun was very small and could never aspire to becoming a regional supplier of cigarettes to British American Tobacco, the company had said.