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Tobacco major Philip Morris to shut Australia factory

| | Updated on: Apr 02, 2014

Global tobacco giant Philip Morris announced on Wednesday it will cease manufacturing cigarettes in Australia.

The move comes after a steady decline in the number of smokers in Australia and a law banning the use of colourful product designs on cigarette packs.

The company blamed the government’s plain-packaging laws for restricting export opportunities.

The firm said plain packaging had not caused a decline in domestic sales, The Australian newspaper reported.

Around 180 factory workers will lose their jobs in Melbourne as the manufacturing operation moves to South Korea at the end of the year.

Official statistics show the proportion of Australians who smoke declined between 2001 and 2012 from 27 to 20 per cent for men, and 21 to 16 per cent for women.

Philip Morris is the second-largest cigarette maker in Australia. The largest, British American Tobacco, plans to continue manufacturing in Australia.

Philip Morris clarifies :

Philip Morris International Inc has clarified that it will cease cigarette production in Australia this year because of restricted export opportunities due to government regulations. About 180 jobs will be cut from its Australian centre in Moorabbin, Victoria by the year's end, with production transferred to South Korea, the company said in a statement.

Published on April 03, 2014

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