BAT threatens to close SA’s only cigarette plant due to branding regulations
British American Tobacco may close SA’s only cigarette plant, which employs 1,100 people, due to new rules to introduce plain packaging
British American Tobacco (BAT) has said it may close SA’s only cigarette plant if plans to ban branded tobacco packaging are implemented. BAT operates its eighth-largest factory globally in Heidelberg, south of Johannesburg. The proposed new rules would threaten the financial viability of the operation, Joe Heshu, BAT’s head of external affairs in Southern Africa, said in an e-mailed response to questions on Monday. Plain packaging threatens the closure of the factory and "poses a threat to the viability of the legal tobacco industry in SA", Heshu said. The move will make it harder to distinguish the cigarettes from black-market cigarettes and "the illegal market will benefit from having a cheaper product", he said. SA is cracking down on industries and products viewed as harmful to consumers, such as a planned tax on sugar-sweetened beverages, which Finance Minister Pravin Gordhan said last month will be implemented later this year. In his budget speech, Gordhan also announced high...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.