BAT Malaysia does not take desicion to wind down operations lightly

KUALA LUMPUR: British American Tobacco Malaysia Bhd (BAT Malaysia) does not take the decision to wind down its factory operations lightly.

In a statement, the company said it had considered and exhausted many options, and the decision to shut down its factory in Virginia Park, Petaling Jaya, Selangor was unavoidable.

It said over the last five years, cigarette taxes increased 110% and consequently, legal sales volume declined significantly while illegal cigarettes now made up more than 40% of the total market.

BAT Malaysia Managing Director Stefano Clini said the restructuring and the company's journey towards a transformed business model would have an impact across the organisation.

"We take great pride in our factory and our people. Our utmost priority has always been and will continue to be the well-being of our people," he added.

BAT Malaysia said the restructuring exercise would also involve sourcing tobacco products for the local market from other BAT factories regionally.

It planned to wind down factory operations in stages and aimed to complete it by the second half of 2017.

"The winding down exercise will affect 230 employees and they will be provided with benefit packages and the option to undergo a career-transition programme," BAT Malaysia added. — Bernama