Dimon and Standard close factories in wake of merger
Standard Commercial, which recently announced a merger with Dimon, will close one of its two tobacco-processing facilities in Wilson, North Carolina, USA, and lay off nearly 500 people next month, reports The News & Observer of Raleigh, North Carolina. Dimon is closing one of its two Virginia plants and laying off 500 people in Danville, Virginia.
Dimon and Standard Commercial are merging to gain an edge in an increasingly competitive tobacco market. The demand for U.S. tobacco has been shrinking as cheaper tobacco from other countries has been gaining market share, and U.S. cigarette consumption continues to decline. Litigation from states and sick smokers has also taken its toll.
Shareholders of both companies approved the merger on April 1. The combined company will be named Alliance One International.