Second biggest cigarette producer in Kazakhstan closing down one of its two production facilities
19 march 2012, 14:56
Tobacco factory. ©AFP
JTI Kazakhstan, second biggest cigarette producer in Kazakhstan, will close down its production facility based in the southern city of Shymkent May 31, 2012, with 80 people losing their jobs, Newskaz.ru reports, citing the Press Service of the Shymkent Mayor Office.
“March 16 the city authorities and representatives of JTI Kazakhstan signed a memorandum on joint actions with regards to the planned closure of the cigarette making facility”, the press release reads.
According to the Press Service, in the recent years the facility has seen a steady decline in its production output due to “falling consumer demand, growing prices for raw materials and growing production costs”. JTI Kazakhstan has decided to consolidate its production in Almaty, the biggest city of Kazakhstan.
The Company will compensate the employees for losing their jobs and will offer professional retraining opportunities.
The tobacco facility in Shymkent was launched in 1995.
Profinance.kz reported in May 2011 that the national tobacco market annual turnover is estimated at $260 million, with the tobacco production declining by 2-3% a year, making up 28 billion cigarettes.
According to Profinance.kz, as of May 2011 Philip Morris Kazakhstan accounted for 45% of the national market, with JTI Kazakhstan (subsidiary of Japan Tobacco International) holding another 42% and British American Tobacco the remaining 9%.