BAT to stop production in Malaysia

British American Tobacco (M) Bhd is to stop manufacturing in Malaysia and source its tobacco products for the domestic market from other BAT group factories regionally, according to a story in The Star.

The company was quoted as saying that its Tobacco Importers and Manufacturers Sdn Bhd unit, which makes tobacco products and semi-finished goods at its factory in Jalan Universiti, Petaling Jaya, would wind down its operations in stages.

The process was targeted to be completed by the second half of 2017.

‘The winding down of the factory operations will affect about 230 employees, who will be provided with a benefits package as well as the option to undergo a career-transition program,’ the Star’s story said.

BAT said the restructuring was in line with the company’s efforts towards realizing a new and more sustainable business model, amid an increasingly challenging business environment.

The land where the factory is located is due to be disposed of through a public tender.