British American Tobacco BAT is closing its only manufacturing plant in South Africa in a move that will shed thousands of jobs, with the group overwhelmed by the proliferation of illegal cigarettes.
The decision by London and Johannesburg will see the group not manufacturing cigarettes for the first time in more than 70 years, resorting to imports to serve the local market.
On Wednesday, the company informed the political leadership of the Lesedi Municipality, where its Heidelberg manufacturing facility is located, that it will mothball the plant by the end of this year, blaming this on illegal cigarettes, which it said now account for 75 of the market.
