Tobacco company Reynolds American to consolidate, upgrade manufacturing facilities

By Michael Felberbaum, AP
Friday, May 28, 2010

Reynolds American to consolidate, upgrade plants

RICHMOND, Va. — Tobacco company Reynolds American says it will close two cigarette plants — one in its headquarters city in Winston-Salem, North Carolina, and another in Puerto Rico — in a move to adjust to changing demand for cigarettes.

The nation’s second-largest cigarette maker says production of cigarettes like Camel and Pall Mall will shift to its largest facility in Tobaccoville, N.C., this summer. It says about 60 jobs in Puerto Rico will be eliminated in the consolidation.

At the same time, Reynolds says it will expand its smokeless tobacco processing and manufacturing capacity at facilities in Memphis and Clarksville, Tenn.

The maker of Kodiak and Grizzly smokeless tobacco says the two plants will be fully operational by early 2012.

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