RICHMOND, Va., July 11, 2016 /PRNewswire/ -- Universal
Corporation (NYSE: UVV) today announced that its subsidiary,
Universal Leaf Tobacco Hungary Pte. Ltd., will discontinue the
processing of leaf tobaccos in its factory in Nyíregyháza,
Hungary effective immediately.
In order to further increase supply chain efficiencies in the
European leaf tobacco market, Universal will concentrate the
processing of Hungarian tobaccos in its facilities in Italy.
Domenico Cardinali, Managing
Director – Europe region, stated,
"This difficult decision was made after an exhaustive review of
strategic alternatives for the Hungary processing operations. Universal would
like to recognize and thank the employees for their many years of
hard work and dedication. In addition, Hungary management has reached agreement with
the affected employees and their representatives for a planned
settlement to support them in this challenging transition.
This change will yield economies of scale for our Europe region and enhance the attractiveness
of Hungarian tobaccos in the international market, with a goal to
better serve its traditional customers."
The restructuring is in line with Universal´s strategy to
efficiently adapt its operations to changing market conditions.
Universal continues to be committed to the production and
purchasing of Virginia flue-cured
and burley tobaccos grown in Hungary and intends to maintain its
traditionally strong market presence in the country.
Headquartered in Richmond,
Virginia, Universal Corporation is the leading global leaf
tobacco supplier and conducts business in more than 30
countries. Its revenues for the fiscal year ended
March 31, 2016, were $2.1 billion. For more information on Universal
Corporation, visit its website at www.universalcorp.com.
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SOURCE Universal Corporation