Marlboro maker Philip Morris has announced that it plans to close its two production sites in Germany. The company cited the drop in demand for cigarettes among Europeans as the reason for its decision, AFP reported.
"In recent years, demand for cigarettes in Europe has declined significantly," the company said in a statement. According to her, the same trend is observed in hand-rolled tobacco.
"This trend is expected to continue in the coming years," according to Philip Morris.
Many smokers are switching to e-cigarettes, vapes, or tobacco heating devices.
The company's factories in Berlin and Dresden employ 372 people. Both sites are slated to close next year.
The tobacco giant said it would begin talks with labor representatives to find "fair and socially responsible solutions" for workers.
The announcement came at a time when Germany's manufacturing sector is experiencing a prolonged period of weakness, weighed down by high energy costs, weak demand at home and abroad and increased foreign competition.
The decline is a cause for concern about Germany's attractiveness as an industrial location.
Struggling carmaker Volkswagen is considering closing at least three German plants and shedding tens of thousands of jobs, labor leaders said on October 28. | BGNES
