Type
Outsourcing
Country
United Kingdom
Region
Location of affected unit(s)
Cardiff; Ballymena
Sector
Manufacturing
Manufacture Of Tobacco Products
Manufacture Of Tobacco Products
12 - Manufacture of tobacco products

184 jobs
Number of planned job losses
Job loss
95 jobs
Number of planned job creations
Job creation
Announcement Date
27 September 2007
Employment effect (start)
1 September 2009
Foreseen end date

Description

Japan Tobacco, a firm that produces tobacco products, is to close its plant in Cardiff with the loss of 184 jobs. The site in Cardiff produces cigars, and is due to close in September 2009. The production at the Cardiff plant will be moved to Ballymena in Northern Ireland, at which 900 are employed and where 95 jobs will be created as a result of the move. Management at Japan Tobacco attributed the decision to falling sales, and also noted the influence of the UK pub and restaurant smoking ban that was implemented in 2007. A spokesman for the firm stated:

‘The decision is a result of a continuing decline in the UK cigar market, and has been accelerated by the smoking ban… Commercially it is not viable to keep the Cardiff factory open.’

Joan Gallagher, Secretary of Grangetown Community Concern, a local Cardiff community group, stated:

‘It's a great blow to the area, [the factory has] been a big employer for many years. Whole families have worked there, particularly women’.

Ian Paisley, Northern Ireland Assembly Member for North Antrim, said it was ‘sad news for Cardiff but of benefit to Ballymena.’

‘It is a vote of confidence in the Ballymena plant and will mean a significant increase in jobs in the locality.’


Sources

  • 27 September 2007: BBC News

Citation

Eurofound (2007), Japan Tobacco, Outsourcing in United Kingdom, factsheet number 65874, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/65874.