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The manufacturer of Marlboro closes its plants in Colombia

June 05, 2019 05:43
Updated on June 5, 2019, 17:50

The breakdown of the line for the production of cigarettes in Medellin and Barranquilla was announced this Wednesday by Coltabaco-Philip Morris International.

As a result, the supply of tobacco ends at the end of the harvest scheduled for the end of 2019.

It must be remembered that Koltabaco is dealing with brands Marlboro, L & M, Chedterfield and Pielrroja. The possible production abroad, at Pieddory, still needs to be defined.

The company said it would work under a new model that would consolidate the integration process with its subsidiaries Colombia, Ecuador, Peru and Venezuela, increasing its synergies, consolidating its market leadership position in the region and strengthening its supply chain activities. value and communities.

Carlos Guzman, vice president of Koltabaco-Philip Morris International in Colombia, expressed his dedication to continuity in Colombia. "We are leaders in the market and we will continue our work under another scheme, through which we want to generate efficiency and make our business sustainable in the long run," he said.

In the era of the world without smoke

The company insisted on a common task to create a world without smoke, which is why they transform the business to achieve this goal by developing new alternatives, Guzman said.

A spokesman said that as an industry, they also need to adapt to the new reality of the market: illicit cigarette trade has grown as a result of a sharp increase in consumption tax in 2016 and reached a record level in 2018 with 25% on the market. In this sense, this difficult reality obliges the company to reconsider its operating scheme.

And the workers

In communication, the company shows that it understands the difficulty of this situation and that priority will always be a fair treatment, with respect and dignity, in relation to its associates.

Regarding tobacco growers, they indicated that the company will adhere to the current contracts for the advance purchase of a tobacco leaf, which lasts until the end of this year, but will not enter into new contracts by 2020.

They added that, in any case, a voucher for current producers is planned to be submitted in order to facilitate their transition to other economic activities, once the current harvest is completed.

Regional income is not affected

The company noted that this organizational model does not affect the collection of the tax on tobacco consumption at the head of the departments, which by 2018 amounted to about 627.795 million pesos.

Also, compliance with the investment and cooperation agreement concluded with the departments is not affected, including the allocation by Philip Morris International of around $ 200 million to combat smuggling.

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