Manufacturing Plants to Close

21 Oct 2005 07:00

British American Tobacco PLC21 October 2005 Imperial Tobacco Canada to close manufacturing plants British American Tobacco's Canadian subsidiary is to close its manufacturingfacilities in Canada. Imperial Tobacco Canada said late yesterday it has decided to close itscigarette factory in Guelph, Ontario, in 2006 and its fine cut / roll-your-ownand leaf processing operations in Aylmer, Ontario, in 2007, as a result of theon-going decline in sales industry-wide. Since 2000 the company's volumes havedeclined 38 per cent. Imperial Tobacco Canada will transfer production to British American TobaccoMexico's Monterrey plant. Mexico is one of the parties to the North AmericanFree Trade Agreement (NAFTA). As a result of the closures, approximately 650 employees will be directlyaffected - comprising 555 jobs in Guelph, 80 in Aylmer, and approximately 15 inMontreal head office, depending on the final impact of the plant closures. This announcement will create restructuring charges of approximately £200million during the next three years, with the largest portion to be taken beforethe end of 2005. Annual savings, once full benefits have been realised, wouldbe approximately £40 million. ENQUIRIES British American Tobacco Press OfficeDavid Betteridge / Teresa La Thangue / Emily Brand+44 (0) 20 7845 2888 Investor RelationsRalph Edmondson / Rachael Cummins+44 (0) 20 7845 1180 or 1519. This information is provided by RNS The company news service from the London Stock Exchange