ITG Brands has said that it is to sack some of the 1,100 employees who work at the former Lorillard tobacco factory in Greensboro, North Carolina, US, according to a story in the Business Journal Of Greater Triad Area relayed by the TMA.
ITG took over the factory when ITG’s owner, Imperial Tobacco Group (now Imperial Brands), bought a number of brands and facilities that had to be sold off by Reynolds American Inc as a condition of its purchase of Lorillard on June 12.
Under the deal, Imperial acquired the KOOL, Salem, Winston and Maverick cigarette brands, the blu electronic cigarette brand, and other assets and liabilities for about $7.1 billion.
ITG blamed the sackings on a decline in production caused by the transfer by Reynolds American Inc of its production to its Tobaccoville factory in Winston Salem, North Carolina, following its purchase of Lorillard.
ITG is expected to manufacture Newport, which was the hugely dominant brand within Lorillard’s portfolio, for RAI until June.
At a recent employee meeting, Mark Smith, a spokesman for ITG, said he did not know how many Greensboro employees would be sacked.
He said ITG had to work with the union.