JTI to Consult on Proposal to Restructure Manufacturing Facilities in Europe

Geneva (ots/PRNewswire) -

Japan Tobacco International (JTI) today announced a proposal to
restructure its manufacturing facilities as a result of significant
and sustained changes impacting its global business.

(Logo: http://photos.prnewswire.com/prnh/20130528/617491 )

The challenging economic environment, excise tax pressure coupled
with illegal trade has triggered industry volume contraction in a
number of key European countries. This is compounded by the need to
comply with legislation, including the revised EU Tobacco Products
Directive (TPD2), which will significantly reduce the number of pack
formats to be produced for various markets. This inevitably has led
to the need to review JTI's manufacturing operations.

JTI will undertake appropriate consultations on proposals to
change its product sourcing, which could lead to the closure of some
of its manufacturing sites. JTI's facilities in Lisnafillan (Northern
Ireland) and Wervik (Belgium) would cease to operate, with production
moving to other facilities, potentially in Poland and Romania. Other
tobacco product (OTP)[1] manufacturing in Trier (Germany) would also
be relocated, with the exception of Ploom[2]-related production.

Consultation with employees' representatives and the European
Works Council will be appropriately conducted. Support for affected
employees will be discussed as part of the consultation process. This
proposal would affect approximately 1,100 full-time jobs across the
European Union.

This restructuring proposal will allow JTI to optimize its
operations, strengthen its competitive position and achieve its
financial commitments in a challenging operating environment. Its
implementation is to be phased, recognizing the needs of each
country, with factory closures completed between 2016 and 2018.

JTI will not provide comments on financials during the
consultation period.

JTI, a member of the Japan Tobacco Group of Companies, is a
leading international tobacco manufacturer. It markets world-renowned
brands such as Camel, Winston and Mevius (Mild Seven). Other global
brands include Benson & Hedges, Silk Cut, Sobranie, Glamour and LD.
With headquarters in Geneva, Switzerland, and about 27,000 employees
worldwide, JTI has operations in more than 120 countries. Its core
revenue in the fiscal year ended December 31, 2013, was USD 12.3
billion. For more information, visit http://www.jti.com.

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1. OTP are tobacco products other than ready-made cigarettes.

2. Ploom is a new generation smoking alternative product.

Photo:
http://photos.prnewswire.com/prnh/20130528/617491

ots Originaltext: JTI (Japan Tobacco International)
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Contact:
For further information, please contact: JTI Press Office, Tel:
+41 22 703 0291, pressoffice@jti.com