British American Tobacco South Africa says plant closure unavoidable despite 'best efforts'

British American Tobacco’s decision to shut down its only manufacturing plant in South Africa has raised concerns about the growing scale of illicit trade in the country. The company will cease cigarette production locally by the end of the year. Area Head of Corporate and Regulatory Affairs Johnny Moloto and Lesedi Local Municipality representative Mluleki Nkosi say the closure will have significant economic impacts. Moloto explained that despite years of cost-cutting, staff reductions and efficiency improvements, the plant is no longer sustainable or competitive within the group. Nkosi added that the municipality is already feeling the financial strain, with monthly payments dropping from R18 million before COVID-19 to about R1.2 million. Latest news on our website