TOKYO (AFP) — Japan Tobacco Inc. plans to axe five overseas plants as part of an overhaul following its acquisition last year of British rival Gallaher Group, a spokeswoman said Tuesday.
JT will close plants in Singapore, Britain, Austria, Ukraine, and the Canary Islands, reducing the total overseas to 26 as part of restructuring that aims to cut costs by 300 million dollars, spokeswoman Yuka Kin said.
She declined to say when the plants would be closed.
JT is also considering opening a new plant in Russia due to robust sales there, despite slowing growth in emerging economies due to the global economic downturn, the official said.
JT bought Gallaher in 2007 for 2.25 trillion yen (24.9 billion dollars), which was the biggest-ever foreign acquisition by a Japanese firm -- a move aimed at offsetting the impact of fewer Japanese lighting up.
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