BAT Cyprus plans to shut down local operations

British American Tobacco, Cyprus, one of the oldest tobacco industries on the island, has announced plans to shut down its factory in Nicosia and lay off its 200 or so workers.

A company announcement justified the closure decision on the drastic fall of production, due to a 50% fall in exports.

Managing Director Soteris Constantinou said that negotiations are already underway with the labour groups to ensure the smooth end of the operations.

“We all worked very hard top maintain the factory in Cyprus, but the recent loss in exports, combined with the high production costs of the factory obliged us to propose the transfer of this output to other BAT plants within the E.U.,” Constantinou said.

“Our aim is to reach a fair arrangement with the labour representatives that will contains the repercussions on those affected to the minimum. In each case the procedures will remain loyal to the Code of Industrial Relations and the Collective Agreements signed by the company.”

“These developments will have no bearing on the quality and distribution of our products,” Constantinou concluded.

The roots of British American Tobacco’s operations in Cyprus date back to the first tobacco company established in Cyprus in 1867 by Dianellos & Vergopoulos. This was later bought by Ardath Tobacco Company in 1967 and the company changed its name to B.A.T. (Cyprus) Ltd. In 1977.

In 1967, another company was established, Carreras of Cyprus which in 1987 was renamed Rothmans Pall Mall. In 1999, within the worldwide trend of mergers, B.A.T (Cyprus) Ltd, Carreras of Cyprus Ltd and Rothmans of Pall Mall were uinified into British American Tobacco, Cyprus.

The company maintains a 70% market share in a country where 27% of the population are smokers, the company announcement said.