Tobacco Giant Philip Morris Ceases Production in Australia
Tobacco giant Philip Morris says it will cease production of cigarettes at its factory in Moorabbin, Australia.
The closure of the factory, which has been in operation for nearly 60 years, will lead to a loss of 180 jobs. The company said that Australia’s regulation regarding cigarette production was a factor in its decision.
Philip Morris said all cigarette production for the Australian market would be moved to its plant in South Korea. The company also said that it had been unable to increase exports as the domestic demand for cigarettes in Australia gradually declined over the past few years.
It blamed the export difficulties on the introduction of fire safety requirements for Australian-made cigarettes in 2010, which forced the plant to make cigarettes that didn’t match consumer preferences elsewhere.
In 2012, Australia became the first country in the world to produce “plain packs”, which bans all company logos and colours from packets, which must instead display graphic health warnings.