Philip Morris Kuban tobacco company has announced its closure in the Krasnodar region. As explained by the management of the factory, this decision was taken against the background of the growth of the illegal cigarette market in Russia due to the reduction of the legal part of the segment, reports Kommersant.

Among the reasons for "Philip Morris Kuban" also named the reduction of the tobacco market over the past 5 years, which made it impossible to load production capacity at two factories in Russia.

After the cessation of activities in the Kuban Philip Morris Kuban will produce at the factory in the Leningrad Oblast. Now the company's management is making efforts to employ as many Krasnodar factory employees as possible there.

"We would like to emphasise that branches of our commercial organisation, Philip Morris Sales and Marketing LLC, continue to operate in the Krasnodar region. We continue to invest in the business and social activity of the region, especially in our corporate sustainability programs and support for socially-oriented projects", commented Alisa Andreeva, corporate affairs manager for Philip Morris International's affiliate network in Russia.

The company in the Krasnodar region opened in 1993, after privatization of 49% of the shares of the tobacco factory Krasnodartabakprom. According to the 20017 data, the factory has become the largest taxpayer from the Federal Tax Service's database, transferring over 46 billion roubles to the Russian budget.

Made in Russia / Made in Russia

Author: Karina Kamalova