Imperial Tobacco has announced it is to close two manufacturing sites, including one in the UK which is to result in the loss of 540 jobs.
The Nottingham factory has been earmarked for closure along with its French plant based in Nantes, with both gradually shutting down over the next two years which will result in almost 900 jobs being lost overall.
Imperial Tobacco has cited declining sales as a factor behind the closures, adding its Nottingham cigarette factory and distribution centre is currently operating at half capacity.
The firm, which produces cigarette brands including Lambert and Butler, JPS and Gauloises, said a consultation on the firm’s restructure plans had begun with unions.
Chief executive of Imperial Tobacco, Alison Cooper, said: “These projects are an essential part of securing the sustainable future of the business.
“The prospect of job losses is always regrettable and we will be doing all we can to support employees and ensure that they are treated in a fair and responsible manner.”
The firm also confirmed 130 jobs will be created at a site in Poland as part of its cost optimisation programme, which it estimates will deliver savings of £300m a year from September 2018.
