Pyxus International affiliate Alliance One Tobacco Argentina (AOTA) will relocate its processing operations from its El Carril facility in the Salta province and begin processing at Philip Morris International’s (PMI) Argentine facility, effective for the 2020 crop.
In addition, AOTA will supply PMI with flue-cured Virginia and burley tobacco.
“AOI’s expanded relationship with Philip Morris International and its local Argentine affiliate reflects the company’s ongoing commitment to improve market share within the tobacco industry and is an example of how Pyxus is continuing to execute against its One Tomorrow transformation strategy,” said Pieter Sikkel, president, CEO and chairman of Pyxus International.
“Across our business, we continually evaluate our operations and the global trade environment to ensure we are best positioned to sustain long-term growth. The restructuring of AOI’s Argentine operations will help to improve overall efficiency and strengthen price competitiveness.”
As part of the restructuring, AOTA expects a workforce reduction. The company will be offering affected employees training courses in various trade industries and entrepreneurship.
AOTA’s Salta buying station in El Carril will remain operational, as will the company’s packed products warehouses. AOTA will continue to contract with growers throughout the tobacco-growing provinces.