United States
ITG Brands, the US division of Imperial Tobacco (Imperial acquired the operation as part of last year’s US $27.4 billion merger between Lorillard and Winston-Salem-based Reynolds American Inc.), has confirmed it will be laying of 375 of its 1,100 workers at its cigarette manufacturing plant in east Greensboro in June.
The layoffs come as production volumes have been reduced by half with the end of a reciprocal manufacturing agreement with Reynolds American. As part of a three-way deal in 2015 that included the merger of Reynolds American with Lorillard and the sale of Lorillard’s plant to its UK-based parent company, Imperial Tobacco Group, ITG Brands continued making cigarettes under Lorillard’s Newport brand for a year.
That agreement comes to an end this summer, with the complete shift of Newport production to Reynolds American’s Tobaccoville plant.
However, as part of last year’s deal ITG Brands picked up several product lines from Reynolds American and Lorillard, including Winston, Kool, Salem, and Maverick and ITG Brands is optimistic about its ability to grow its newly-acquired brands, with an emphasis on premium brands Winston and Kool in particular.”