Philip Morris ends production in Germany

The tobacco company Philip Morris wants to end its production in Germany. The decision affects the factories in Berlin and Dresden, as the company announced. 372 employees may be affected. "Fair and socially acceptable solutions" are to be agreed with works councils and social partners for them.

The move is justified by the fact that demand for cigarettes and tobacco in Europe has been declining for years. The company has carefully examined all available options for adjusting production, according to the press release. Production at Philip Morris Manufacturing GmbH in Berlin is to be discontinued in the first half of 2025. The f6 Cigarettenfabrik GmbH & Co KG in Dresden will follow in the middle of next year.

Philip Morris International is constantly reviewing its business processes to ensure operational efficiency, said Jan Otten, Managing Director responsible for both German plants, according to the press release. "We are aware that difficult but necessary decisions have to be made in order to adapt to current market developments." The focus will be on supporting the employees affected by this difficult phase.

The international tobacco group owns the Marlboro, L&M and Chesterfield brands, among others. The German subsidiary is headquartered in Gräfelfing near Munich. According to Philip Morris, it employs a total of around 1,400 people in Germany.