News update: British American Tobacco’s South African plant to remain open

 News update: British American Tobacco’s South African plant to remain open

News update.

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British American Tobacco South Africa (BATSA) today announced that while it has suffered a loss in sales, it has decided not to close its Heidelberg factory. The company said the aim of keeping the factory open was to minimise the impact of job losses.In a statement, the company said the latest market research shows that the company lost competitiveness, with a third of their volume going down.

“The sales ban turned the local tobacco market upside down and SA now has the biggest illicit market in the world.”

BATSA general manager Johnny Moloto said “The company, however, failed to convince the Ministry of Finance not to increase excise until the government had implemented proper enforcement against illicit traders. The Minister chose instead to increase the rate on tobacco products by double the inflation rate to 8%.” He added “This move was made despite evidence pointing to a stretched consumer who cannot afford basic goods and services and who will be forced to buy cheaper illicit tobacco products,” said Moloto.

Chris Louw

https://sashares.co.za/

Featured Financial Writer for SA Shares - Read more about Chris's Bio -

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