Canadian Manufacturing

Philip Morris to end cigarette production at Dutch plant this year

Decision to cease production by October could impact about 1,230 of current 1,371 employees



NEW YORK—Philip Morris International Inc. will end cigarette production at its factory in the Netherlands as Europeans break the smoking habit for both financial and health reasons.

The company said it has started talks with employee representatives on a proposal to end production at the factory in Bergen op Zoom, near the Belgian border.

If production is ended, it could impact about 1,230 of the current 1,371 employees.

Philip Morris, based in New York, reports that in the last four years, cigarette volumes have weakened in Europe due to economic softness, illicit trade and as consumers shifting to cheaper alternative products.

The company said that volume recovery is highly unlikely.

Europeans are also quitting.

Philip Morris Holland anticipates cigarette production at the factory will end by October.

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