Berlin and Dresden: Philip Morris wants to end production in Germany

The tobacco company Philip Morris wants to end its production in Germany. The decision affects the factories in Berlin and Dresden, as the company announced. 372 employees may be affected. “Fair and socially acceptable solutions” should be agreed for them with works councils and social partners.

The move is justified by the fact that demand for cigarettes and tobacco in Europe has been declining for years. The company has carefully examined all available options for adjusting production, the statement said. Production at Philip Morris Manufacturing GmbH in Berlin is scheduled to cease in the first half of 2025. f6 Cigarettenfabrik GmbH & Co. KG in Dresden will follow in the middle of next year.

Philip Morris International continually reviews its business processes to ensure operational efficiency, said Jan Otten, managing director of both German plants, according to the statement. “We recognize that difficult but necessary decisions must be made to adapt to current market developments.” The focus will be on supporting the employees affected during this difficult phase.

The international tobacco company includes the brands Marlboro, L&M and Chesterfield, among others. The headquarters of the German subsidiary is in Gräfelfing near Munich. According to Philip Morris, it employs a total of around 1,400 people in Germany.

The Dresden Bundestag member Markus Reichel (CDU) regrets the step, according to a statement. “This is the end of a long tradition here in Dresden,” he said. For him, the important question is whether all ways to avoid a closure have been examined. The Food, Pleasure and Restaurants union (NGG) also expresses similar doubts. The tobacco company is putting good employees who are loyal to cigarettes out on the street at both locations, said Uwe Ledwig, chairman of the NGG East regional district, according to a statement.