Manufacturer Winston and Camel close the factory in Moscow – RBC

The production of cigarettes at a tobacco factory JSC “Ligget-Ducat” in Moscow. Archival photo

Photo: TASS

The Japanese tobacco company JTI (Japan Tobacco International) has decided to close its Moscow factory “Ligget-Ducat” up to mid-2016. This is due to a reduction of the tobacco market in Russia, said in a press release received by RBC.

The JTI explained the crisis in the tobacco market price increases on cigarettes, caused by an increase in excise taxes. The company decided to close the plant “after a thorough analysis of the situation and all possible options in order to preserve the effectiveness of its activities in Russia».

The Japanese company has promised to minimize the effects of the closure of the plant for the 573 workers of the factory. They offered compensation “in the amount significantly exceeding the requirements of the labor legislation.” JTI also promised to provide staff support to recruitment agencies for future employment.

The company stressed that the JTI will remain the leader of the Russian market with a factory “Petro” in St. Petersburg, which is a common area of ​​production of finished products. According to data posted on the website of the company, JTI owns the plant «JTI Yelets» in the Lipetsk region and the factory “Cres Neva” in the Leningrad region.

In Russia, JTI portfolio includes international brands Winston, Mevius, Camel, Sobranie, Glamour and LD, and also the Russian brand “Russian style”, “Peter I», «Troika” and others.

As he wrote RBC in early February, the market for cigarettes in Russia in 2014 decreased by 9.2%, to 310.6 billion pcs., or 15.53 billion packs. This is evidenced by statements of Philip Morris. It shows that in 2014 the Russians bought 1.5 billion packs of cigarettes less than in the previous year.