Published on July 3, 2008
Philip Morris, also known as Altria Group, announced that it would close its cigarette plant in Concord in three years.
At this plant are employed 2,500 people which work in this company for many years. How would they live after loosing their work isn't known. “It is my hope that the majority of the employees at Cabarrus will be able to relocate to Richmond,” says Mike Szymanczyk, Philip Morris USA chairman and chief executive.
As was sustained by company officials, closing is result of decline in U.S. demand for cigarettes. It was found a resolution for Cabarrus County workers. Philip Morris Company offered jobs for them in Richmond, Va., facility, where most local production will move.
“It is my hope that the majority of the employees at Cabarrus will be able to relocate to Richmond,” says Mike Szymanczyk, Philip Morris USA chairman and chief executive.
N.C. State University economist Mike Walden said that this closing will affect the Cabarrus economy. He said: “Employees at cigarette companies are "the cream of the crop" when it comes to wages. Cigarette companies are extremely profitable because they take an inexpensive product (raw tobacco) and sell it for a high price.”
Officials of Cabarrus County officials said that even the Philip Morris announcement is surprising it was expected. John Cox, president and chief executive of Cabarrus Regional Partnership maintained: “We've been saying for a long time that the economy of North Carolina has transitioned from textiles and tobacco to a more information-based economy. By 2011, we will have lost tobacco in Cabarrus County."
Cox also referred to all 25,000 employers that would remain jobless and their families. “It's a very difficult time for us emotionally,” he says, speaking from a cell phone outside the plant on U.S. Highway 29.
Same sadly reaction presents Mayor of Concord, Scott Padgett that affirmed:” We are saddened by the news that one of our most vital industries is closing its doors. As with any industry closing, our first thoughts must be for the people who are losing their jobs.”
News about closing the cigarette plant upheaval all community. Bonnie Silvers, owner of Sweet Pea Café on Union Street in Concord, says : “Many Cabarrus-area families depend on income from the plant. It's really sad for those people. It's going to be a detriment to the community.”
“Subdued” this is word that describes the reactions of employers when heard about decision meted at a 7:15 a.m. at the Concord facility.
