The British American Tobacco (BAT) has announced to close its Jinja cigarette factory and transfer the manufacturing operations to Nairobi, Kenya in a major restructuring process.

Jimmy Kiberu, head of corporate affairs told press here on Thursday that the changes were in line with the East African Community that enable BAT to create an integrated business unit for its operations in the region.

"Uganda tobacco leaf will continue to be used in manufacturing cigarettes for domestic market. The Jinja factory will close in April 2006. The restructuring will enable each sister company to specialize and focus on those areas where it commands comparative advantage," he said.

Jinja factory, set up in 1928, which has capacity of up to 2 billion cigarettes per year, is currently operating at only 50 percent of its capacity. Current volume is approximately 1.1 billion cigarettes.

Source: Xinhua