NEW YORK (TheStreet) -- Reynolds American (RAI) will be eliminating 60 manufacturing jobs, as it expands its smokeless tobacco business and finds ways to cope with falling U.S. tobacco sales by shutting down plants and moving production around.
Reynolds will be closing a cigarette factory in Winston-Salem, N.C. and one in Yabucoa, Puerto Rico. Production from these older plants will be transferred to the company's largest facility in Tobaccoville, N.C.
In a press release, the company said 60 jobs will be cut, as cigarette production at a Reynolds affiliate in Yabucoa is transferred to Tobaccoville by the end of August.
Meanwhile, production at the company's Winston-Salem-based Whitaker Park plant will begin moving to Tobaccoville this summer. The Whitaker Park factory will be shut down in mid-2011.
Reynolds' smokeless tobacco unit, American Snuff Company, on the other hand, is expanding its processing and manufacturing capacity by investing in facilities in Memphis and Clarksville, Tenn.
In Memphis, American Snuff is expanding operations at a property and facility it bought last year. Construction there began in April, and the facility will be ready in Jan. 2012. The company's current plant will close in 2012. Construction is also ongoing at the Clarksville plant, which will be ready by early 2012.
-- Reported by Andrea Tse in New York
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