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Spain's last cigarette factory shuts as sales go up in smoke
Photo: Pedro Armestre/AFP

Spain's last cigarette factory shuts as sales go up in smoke

AFP · 19 Jan 2016, 15:39

Published: 19 Jan 2016 15:39 GMT+01:00

The group's cigarette sales in Spain have slumped more than 45 percent in volume over the past five years due in part to regulatory pressure such as "anti-tobacco laws, smoking bans, a rise in health measures, plain packaging," a spokesman who refused to be named told AFP.

"A considerable rise in illegal sales, caused in large part by the economic crisis" also contributed to the slump, and a drop in exports to key Middle-Eastern markets such as conflict-ridden Iraq and Syria had an impact too, the group added.

Spain's economy, the fourth largest of the eurozone, went through years of on-off recession before starting to recover in 2014.

Altadis said it aims to close its cigarette factory in the northern La Rioja region by June 30th, prioritising early retirement or voluntary redundancy for the 471 workers affected.

It's "the last cigarette factory belonging to Altadis in Spain," the spokesman said, adding that the group still had a cigar and cigarillos plant in the northern Cantabria region.

Story continues below…

Altadis was formed through the merger of Spain's Tabacalera and France's Seita in 1999, and the group was subsequently taken over by Imperial Tobacco in 2008.

The firm had already announced it would axe nearly 10 percent of its staff in Spain in 2013 in the face of a sales slump.

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