National Tobacco Company LP, a subsidiary of North Atlantic Trading Company Inc., a wholly-owned subsidiary of North Atlantic Holding Company Inc., announced September 5 that all tobacco product manufacturing and distribution at its Louisville, Ky., facility will cease by year-end 2009.
Production of all NTC loose-leaf tobacco brands, which is the primary function of the Louisville facility, will be transitioned to Owensboro, Ky., under a long-term agreement with Swedish Match North America Inc. NTC will retain all marketing, distribution and trademark rights over its brands. Specific plans for NTC Roll-Your-Own tobacco manufacturing and Louisville product distribution will be announced in the future. The company will continue to maintain its administrative headquarters at the Louisville facility.
Ron Tully, vice president of public affairs, stated, "NTC has come to this decision because the Louisville facility, built in the early 1900s, operates well below capacity, is energy inefficient and consists of a series of unconnected, multi-story buildings with limited weight-bearing floors that cannot satisfactorily support modern manufacturing techniques. Declines in overall tobacco industry volumes, and increasing regulatory burdens on the industry also contributed to the decision to cease production and distribution at this facility."
Tully further added, "The company deeply regrets the impact of this decision on our employees, their families and the Louisville economy. This decision is not the fault of any of our employees, many of whom have over 30 years of service, or are second- or third-generation employees. Unfortunately, the company cannot foresee any future developments, alternatives or improvements that could change this decision."