AOI consolidates U.S. business

Alliance One International (AOI) plans to consolidate all its U.S. tobacco processing operations to its Wilson, North Carolina, facility by September 2019. The decision resulted from a review of the company’s U.S. tobacco operations and reflects a confluence of significant global events and ongoing trade conditions, including new and increased tariffs on U.S. tobacco, declining export demand and the strong U.S. dollar.
“We continually evaluate our operations and the global trade environment to ensure we are best positioned to meet the needs of our customers and sustain long-term growth,” said Pieter Sikkel, president, CEO and board chairman of AOI’s parent company, Pyxus International
“While this difficult, but necessary, decision results from a confluence of events, we remain committed to the U.S. tobacco industry and continue to work diligently to improve the environment for our contracted growers. Consolidating our U.S. tobacco processing operations in Wilson is designed to maximize efficiency and allows us to continue to competitively deliver value-added products and services to our customers.”
As part of the consolidation, Alliance One plans to repurpose its Farmville, North Carolina, processing facility, resulting in a workforce reduction. The current tobacco processing operations in Farmville will be relocated to the Wilson facility, targeted to be effective as of the beginning of the 2019 season. The company anticipates some jobs will shift from Farmville to the Wilson facility. The Farmville facility will be repurposed for storage and special projects.
“We recognize the impact this decision will have on our employees, their families, and the Farmville community, and are committed to helping those impacted as we consolidate our tobacco processing operations,” said Herbert Weatherford, Alliance One International’s regional director of North and Central America. “We are focused on the success of the U.S. tobacco industry, our contracted farmers and driving strategy and long-term sustainability to the U.S. market.”