54 workers at a Dothan cigar manufacturing facility learned this week their jobs are going away, but the global tobacco company closing its doors in Houston County isn’t leaving them empty-handed.
On Wednesday, PMI U.S. announced they will wind down operations in the Wiregrass in the coming months as part of their public health mission to pivot toward a smoke-free future. Roughly 20 employees will stay on to support ongoing needs of the facility and community.
According to the company, all those impacted by the closure will receive a top-notch severance package that includes extended salary continuation, company-paid health insurance for a period after departure, and help finding their next job.
“Everyone impacted will receive strong support,” the company said in a news release today.
Cigars were not actually originally part of PMI’s core business — the Dothan facility came to the company through its 2022 acquisition of Swedish Match, and the site itself has operated as a cigar maker for roughly 25 years.
But today’s announcement is part of a broader shift toward smoke-free, FDA-authorized nicotine products, such as Zyn, which the company says is intended to help the nearly 30 million American adults who still smoke move away from cigarettes.
“The decision to close our manufacturing operations in Dothan reflects our focus on operating efficiently and sustainably across all aspects of our business and on accelerating the growth of our smoke-free business in America,” Peter Luongo, Managing Director of PMI’s cigar business said Wednesday.
“This change does not diminish the pride we have in the work done in Dothan. The dedication, craftsmanship, and teamwork of our colleagues here have had a meaningful impact on our business.”
PMI said its broader U.S. commitment remains unchanged, having invested more than $1 billion in American manufacturing and workforce development since 2022.
The company said those investments are generating thousands of jobs and more than $800 million in annual economic impact nationwide.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
