A number of employees at British American Tobacco face an uncertain future as talks continue over a merger with another local firm, Times of Malta has learnt.

Sources said the company was considering shedding about 15 of its employees: half the workforce.

The company’s head of trade and operations, Charles Saliba, said that since the process had not been finalised, he had nothing to say.

When contacted, General Workers’ Union section secretary Jason Deguara confirmed the employees’ future was being discussed.

“We were informed about a restructuring exercise of the company’s European operations but that’s all there is for now,” he said.

“British American Tobacco (Malta) Ltd has reviewed its operating model with the intention of strengthening its competitive position in the Maltese market and entering into a relationship with a local reputable company, Salvo Grima Group.

“The merger is expected to expand Salvo Grima Group’s operations, further strengthen BAT’s position and secure its long-term investment. Detailed engagement with Salvo Grima has been initiated and is expected to be finalised by October,” he said.

When pressed on how many people were expected to lose their job as a result of the merger, Mr Saliba replied: “Please appreciate that this process is not yet fully finalised and no further details have been formalised or are available at this point in time.”

British American Tobacco (Malta) had replaced Central Cigarettes when this halted operations in 2007.

Meanwhile, the management of Nylon Knitting is struggling to keep the company afloat after a drastic slowdown in sales.

Business unit manager Pier Luigi Di Pilato confirmed efforts were being made to bring more work to Malta.

“We have some difficulties. Sales dropped between 2012 and 2013 and this year, we are trying to maintain last year’s level. We are not in danger but we are not as happy as we used to be. We believe in our future here but are being very careful,” he said, confirming some employees’ contracts were not being renewed and people who left were not being replaced.