MORRISVILLE, N.C., Dec. 9, 2019 /CNW/ -- Alliance One
International, LLC (AOI), a Pyxus International company (NYSE:
PYX), today announced that its Argentine subsidiary, 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 Argentine affiliate,
effective for the 2020 crop. In addition, AOTA will reinforce its
commercial relationship with Philip Morris through the supply of
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, Pyxus International President,
CEO and Chairman. "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.
"We recognize the impact that these changes will have on AOTA's
employees, their families, and the El Carril community, and we are
committed to helping those impacted as we restructure local
operations," said Alex Strohschoen,
President of AOI. "This change reflects our commitment to position
our business for long-term success in Argentina. It will also help to enhance the
sustainability of the Argentinian tobacco market due to anticipated
increases in exports and improved competitiveness on the global
market."
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.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
These statements are based on current expectations of future
events. Such statements include, but are not limited to, statements
about future financial and operating results, plans, objectives,
expectations and intentions and other statements that are not
historical facts. Such statements are based on the current beliefs
and expectations of management and are subject to significant risks
and uncertainties. If underlying assumptions prove inaccurate or
known or unknown risks or uncertainties materialize, actual results
may differ materially from those currently anticipated expected or
projected. The following factors, among others, could cause actual
results to differ from those expressed or implied by the
forward-looking statements: changes from anticipated levels of
tobacco exports from Argentina and
the cost competitiveness of Argentinian-sourced tobacco on the
global market. Additional factors that could cause results to
differ materially from those expressed or implied by
forward-looking statements can be found in Pyxus's most recent
Annual Report on Form 10-K for the period ended March 31, 2019 and the other filings with the
Securities and Exchange Commission (the "SEC") which are available
at the SEC's Internet site (http://www.sec.gov).
About Pyxus International, Inc.
Pyxus International Inc. (NYSE: PYX) is a global agricultural
company with 145 years' experience delivering value-added products
and services to businesses and customers. Driven by a united
purpose—to transform people's lives, so that together we can grow a
better world—Pyxus International, its subsidiaries and affiliates,
are trusted providers of responsibly sourced, independently
verified, sustainable and traceable products and ingredients. For
more information, visit www.pyxus.com.
About Alliance One International, LLC
Alliance One International, LLC is a leading independent leaf
tobacco supplier. Working with tobacco farmers in 30 countries
around the world, Alliance One is recognized for producing
sustainable and traceable leaf tobacco. For more information, visit
www.aointl.com.
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SOURCE Pyxus International, Inc.