Altria Sells Cigarette Plant for $68.5 Million

Altria Group

Philip Morris USA sold last week its cigarette plant in Concord, N.C. for a price of $68.5 million to Victory Industrial Park.  The plant was inactive for five years and it  includes 3.5 million square feet of buildings.

Altria Group Inc., the Philip Morris parent company, in 2009 closed the plant in the city of Concord and Cabarrus County north of Charlotte. On the plant worked 2,500 people. Altria Group just moved its cigarette manufacturing to its plant in South Richmond.

The company closed its plant because it needed a solution to bring its manufacturing capacity in line with drop of cigarettes use among population in the USA. In 2013 the manufacturer of Marlboro cigarettes in the USA faced volumes drop about 4% to 129.3 billion cigarettes.

The new owner of the plant, Victory Industrial Park, bought the Philip Morris property in Concord, North Carolina, and till now they do not say how exactly they want to use it.

Altria representatives told that they plan to sell some of the company’s properties in the Richmond region, which do include around 500,000 square feet of laboratory, warehouse, office.  The properties are still for sale.

At the beginning of the year, Altria sold its former research site in the Chesterfield County Airport Industrial Park and also a research center in Hopewell that is investing $15 million to transform the former Philip Morris USA plant into its proper business innovation center.

Generally J. Scott Padgett, the Mayor of Concord, is very happy about the sale of the property.

Jones Lang LaSalle, was occupied with sale of the property. At the beginning of the year, Philip Morris hired CBRE Group Inc. to market the plant.

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