Tobacco giant Philip Morris, the maker of Marlboro cigarettes, last week told that by the end of current year it stops manufacturing cigarettes in Australia and moves production to Korea.
Philip Morris company has been making cigarettes at its Melbourne, Moorabbin plant for around 60 years.
Almost 180 factory workers are going to lose their jobs. However, representatives of Philip Morris told that 550 workers in Australia will perform corporate operations, which will still remain in Melbourne.
The tobacco company’s main reasons for closing cigarettes production in Australia are strict regulations of Australian Government introduced in 2010 which demanded cigarettes produced in the country to conform to particular standards, and besides this past decades company registered a significant decline in the local market.
According to John Gledhill, PML Managing Director Australia, New Zealand and Pacific Islands, in 2006 – 2009 Philip Morris invested a lot of money in the Moorabbin factory in order to capitalise on export opportunities across the region. But these opportunities have failed because Australian Government reduced fire risk requirements introduced in 2010 on all cigarettes made in the country that do not correspond consumers’ preferences.
Export opportunities restricted by regulations imposed by Australian Government reduced by 50% operating at Melbourne factory.
Philip Morris promised it will provide necessary support for affected employees.
According to Ben Davis, the Australian Workers’ Union’s Victorian secretary, the tobacco company will make all possible to help the workers.