Philip Morris (Pakistan) Limited (PMPKL) has announced to reorganize its cigarette-manufacturing operations, following a strategic review to optimize process efficiencies and operational effectiveness and to position PMPKL for sustainable future growth.
This will involve the closure of the cigarette-manufacturing facility in Kotri, Sindh and will impact 194 employees, all of whom will be offered separation packages that will exceed what is required by law in order to facilitate them through this difficult transition period.
Commenting on today’s announcement, Joao Martins, Managing Director PMPKL said,
PMPKL remains committed to operating in Pakistan, through our manufacturing facility in Sahiwal, the Green Leaf Threshing plant in Mardan and by maintaining a strong ongoing commercial presence.
The wide presence of illicit cigarettes in the country has impacted the legal industry volumes, as a result our manufacturing footprint was in excess of requirement, hence PMPKL decided to consolidate its current manufacturing footprint to achieve greater efficiency and for a sustained business outlook.
He added that the company will prioritize decent treatment of employees.
Our priority will be to treat all our employees fairly and with respect and dignity. We appreciate the contributions that each and every colleague has made over the years and we understand that this is difficult news for our employees.
Philip Morris has a big vision, to create a smoke-free world, and we are transforming our business to achieve that vision. Change at this scale is never easy. Our strong global combustibles business has enabled us to develop better alternatives for smokers but the increase in illicit trade in Pakistan, together with the global industry volume trend, has impacted legal sales volumes in Pakistan to such an extent that our current manufacturing footprint has become unsustainable.