(Bloomberg) -- Philip Morris International Inc. is closing two factories in Germany due to falling tobacco sales across Europe.
The maker of Marlboro cigarettes said Tuesday that demand for cigarettes had fallen significantly in recent years, in a trend it expects to continue. Demand for rolling tobacco, made at the company’s Dresden plant, is also in decline.
Philip Morris is among the tobacco firms seeking to move its customers to alternative products such as vapes, heated tobacco and oral nicotine pouches. It has set a target of reaching two thirds of sales from cigarette alternatives by 2030.
The company employs 372 workers at its factories in Berlin and Dresden, which will close in the first half of next year. Philip Morris said it would begin consultations with employees and works councils.
©2024 Bloomberg L.P.
