Imperial Tobacco is to end cigarette manufacturing in the UK after announcing plans to close its factory in Nottingham with the loss of up to 540 jobs.
The Bristol-based company, which employs 1,700 people in the UK, said the factory has the capacity to make 36 billion cigarettes a year but will only produce 17 billion in 2014.
It blamed declining industry volumes in Europe, which have been impacted by increasing regulation and taxation and the growth in illicit trade.
The company is also closing a production site in Nantes, France, where 320 people are employed.
Imperial Tobacco announced it will close its factory in Nottingham under restructuring proposals. The decision to shut down the factory will cost up to 540 jobs.