British American Tobacco South Africa BATSA says it has begun engaging workers and unions in the Section 189 process that could result in up to 230 job losses at its sole cigarette factory in the country.
BATSA confirmed this week that it was shutting down its Heidelberg plant in Gauteng, blaming the rapid growth of illegal cigarettes.
The company says nearly three-quarters of all cigarettes sold in the country are now illegal, making local production too costly to continue.