GREENSBORO, N.C. -- ITG Brands has announced plans to close its more than 100-year-old Reidsville tobacco manufacturing facility in 2020, cutting more than 100 jobs.
The tobacco company says all of its cigarette production will shift to the company's Greensboro facility.
117 people are employed at the Reidsville facility -- 89 hourly and 28 salaried. Displaced employees will receive severance. The workers will remain at the Reidsville factory until it closes in 2020.
The company says there are no plans at this time to move any of those employees to the Greensboro location. Right now, the Greensboro facility employees 590 people.
“Deciding to shift operations from Reidsville to our Greensboro plant was not an easy decision to make, especially given the long tradition of tobacco operations in Reidsville,” said Dan Carr, President & CEO of ITG Brands. “Reidsville has experienced and dedicated employees, a great business climate and cooperative public officials, however, it is a business decision we had to make,” he said.
City of Reidsville and Rockingham County leaders released a joint statement about the plant closing. They say it is a devastating loss to the community, and they plan to work with the displaced employees to try to help them find new jobs where their skills will be needed.
"Officials with the City and County worked closely with ITG Brands the last few years to do all we possibly could to try to prevent this. We understand that sometimes a company must make a bottom-line business decision. Unfortunately we are on the wrong side of that decision this time," the statement read in part.
The company says by moving operations to Greensboro, it will lower manufacturing and regulatory costs, and will be able to reinvest in its business and continue to grow its brands.
ITG Brands' Reidsville factory makes products for USA Gold, Sonoma, Montclair and Rave cigarette brands. Products for Winston, Kool, Salem and Maverick are made in Greensboro.
In June 2016, ITG Brands cut 375 jobs at its Greensboro facility.
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