BAT Close South Afriaca Cigarette Factory By The End Of 2026

British American Tobacco will close its cigarette factory in South Africa by the end of 2026, claiming that illegal cigarettes are squeezing the legal market

According to Reuters, British American Tobacco South Africa (BATSA) has announced that due to the continued expansion of illegal cigarette trade, the company will cease local production of factory manufactured cigarettes (FMC) in South Africa by the end of 2026 and close its manufacturing plant in Heidelberg, Gauteng Province. In the future, the company will continue to supply adult consumers in the area through imports.

BATSA stated in a statement that approximately 75% of the South African cigarette market is currently estimated to be illegal products, making continued local manufacturing “no longer feasible”. The company also stated that the Heidelberg factory is currently operating at only about 35% capacity due to declining sales.
In terms of employment, BATSA stated that factory closures will threaten approximately 230 jobs in Lesedi Municipality, South Africa. The company has initiated the legal negotiation process on January 15th and expects to complete the relevant negotiations by the end of March 2026. The comprehensive closure of the factory is planned to be implemented by the end of 2026.
BATSA also links the issue of illegal trade to inadequate law enforcement and policy factors, including the tobacco sales ban during the 2020 pandemic, the consumption tax hike exceeding inflation levels, and relevant tobacco control legislation currently under review by parliament. The company stated that if there is a “significant and sustained” improvement trend in the illegal trade environment in South Africa, it will consider reinvesting in local production.

Reference: BAT South Africa to shut cigarette plant as illicit trade squeezes legal market | Reuters

British American Tobacco (BAT) was founded in 1902. They one of the largest multinational companies in the tobacco industry.
BAT South Africa as part of this global network. They are a key player in the South African tobacco market, and focuse on manufacturing and distributing tobacco products in the region.

BAT South Africa produces and markets a broad portfolio of cigarette brands. Some of the most well-known brands under BAT’s umbrella include Dunhill, Lucky Strike, Pall Mall, and Peter Stuyvesant.
In addition to traditional cigarettes, BAT has been diversifying its portfolio to include alternative nicotine products, such as vapes (e.g., the Vype and Vuse brands) and heated tobacco products, to cater to changing consumer preferences and regulatory shifts.

The vape products in South Afriaca is very good business day by day. But mostly of vapes are fruit flavor vape style. As BAT vape brand vuse vape flavor is major mint. So, I don’t have any date to know theirs sales volume. For theirs Chinese manufacturers, First Union and Smoore are always options. And some manufacturing services have been transferred to Indonesia.