Gauloises Maker is Shutting its Lenton Factory

Published on August 15th, 2014 00:00

Imperial Tobacco is dealing with a backlash after declaring it will shut its Lenton plant and turn off more than 540 workers. Gauloises maker announced that reduced sales and amplified regulation had affected its revenue.

The plant on Thane Road, in Lenton Industrial Estate, has been running solely at 1 / 2 capacity, that is why it will become a be a victim of a modifying industry, stopping its activity by 2016.

The association representing Imperial Tobacco employees, Unite and GMB, promised to struggle the closure and the shift of manufacturing process to Eastern Europe, naming it "a negative tactic" to maintain profits upward.

Rhys McCarthy, national official at Unite, stated: "The company has determined to get rid of its UK employees and the only people who will be reaping benefits from this maneuver are the investors and executive company directors who will gain more money from this cost cutting exercise once everything is settled.

George Cowcher, chief executive of the Chamber of Commerce for Derbyshire, Nottinghamshire, stated that this step was "a huge hit." He also said: "It is one more classic local industry - in addition to coal mining and fabrics - which has been practically disappeared or is decreasing recently and it will be very sad to see it closing its activity here.

"Despite the fact that the shutdown will take places within the next two years, emphasis should be made on seeking to move as many of the affected workers as possible into other similar employment." "Smoking is growing to be less popular in recent years, however it is rising in less developed countries as the Far East and Middle East," he added. "Being a company which sells similar consumer products, this is where you want to concentrate."

"Smoking is diminishing more and more so there should be a particular consolidation in European tobacco markets as there won't be significant expansion. "Transferring production to Eastern Europe signifies it is planning to be quite easy to transport the product to the UK. So the choice seems to be logistical."

Mr. Bergin determined: "It is really a shame. It was a major company for local people and a large employer over time, employing thousands of people. "But the volume of production just kept decreasing and there is absolutely nothing you can undertake about that."