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Philip Morris will close cigarettes production in Australia

June 16, 2014

Tobacco Corporation Philip Morris will close its only tobacco plant in Australia located in Moorabbin city. BBC News informs about it. Plant will be closed after 60 years of work, its' closure will cost the city 180 working places. Company will transfer part of facilities located on the plant to South Korea.

Company explained decision with extremely strict regulatory rules of tobacco products turnover that exist in Australia. In particular, in 2012 Australia has adopted law that requires from all manufacturers to remove from packs any logos and colors leaving just graphic warnings about danger for health. Sales in the country have reduced significantly for the last years as Australians smoke less and less. At the same time has reduced export volume from this plant as requirements of safety of manufactured goods claimed by Australian regulators don't correspond to consumers' preferences in other countries. As result plant till present moment worked less than on half of it's facilities. All attempts to increase sales during the last years were unsuccessful.

After closing of Philip Morris plant in Australia work will lose 180 of people. At the same time Company will keep its headquarters in Melbourne and offices in other cities of the country in which work 550 people. According to official data in Australia in 2001 smoked 27.2% of men and 21.2% of women but in 2012 - 20.4 % of men and 16.3 % of women.


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