FOR IMMEDIATE RELEASE
Tokyo, May 5, 2011
JT Plans Closure of Hainburg Factory in Austria
Japan Tobacco Inc. (JT) (TSE: 2914) announced that for the purpose of developing the
manufacturing structure with greater efficiency in the company’s international tobacco
business, we have formalized intent to close the Hainburg factory, followed by the
commencement of consultations with the local works council.
Production in the Hainburg factory is planned to be ceased between the end of 2011 and
the beginning of 2012. In connection with this, some of the Vienna based
administrative functions are also anticipated to be rationalized. Approximately a total
of 320 jobs are planned to be affected by the rationalization. In accordance with the
planned closure of the Hainburg factory, we are examining transfer of some of the
manufacturing capability to other factories in the European Union, such as to the
Gostkow factory in Poland and to the Bucharest factory in Romania.
Following the planned Hainburg factory closure, the number of factories in our
international tobacco business will be 28.
The effects of this plan on our financial performance have not been confirmed at present.
Outline of the factory:
Hainburg Factory
Location: Niederösterreich, Austria
Key brands produced: Benson & Hedges and Memphis
Annual production: Approximately 10 billion cigarettes
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Japan Tobacco Inc. is a leading international tobacco product company. Its products are sold in
over 120 countries and its internationally recognized cigarette brands include Winston, Camel,
Mild Seven and Benson & Hedges. With diversified operations, JT is also actively present in
pharmaceuticals and foods. The company’s adjusted net sales excluding tax(*) were ¥1.980
trillion (US$21.3 billion(**)) in the fiscal year ended March 31, 2010.
* Adjusted net sales excluding tax on a consolidated basis do not include revenue from the
imported tobacco, domestic duty free, the China Division and other peripheral businesses in the
Japanese domestic tobacco business. Nor does it include revenue from distribution, leaf tobacco,
private label, contract manufacturing and other peripheral businesses in the international
tobacco business.
**Translated at the rate of ¥93.04 per $1, as of March 31, 2010
Contacts: Hideyuki Yamamoto, General Manager
Yoshinori Tsuchiya, Associate General Manager
Media and Investor Relations Division
Japan Tobacco Inc.
Tokyo: +81-3-5572-4292
E-mail: jt.media.relations@jt.com