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British American Tobacco South Africa (BATSA) has announced plans to close its manufacturing facility in Heidelberg, Gauteng, South Africa, by the end of 2026, marking the end of the company’s local cigarette production after more than 50 years.
The decision to wind down operations at the historic site, which employs approximately 230 people, is reportedly driven by the surge in the illicit cigarette trade. According to BATSA, illegal products now account for roughly 75% of the South African market, rendering local manufacturing “commercially unviable”. The Heidelberg plant, once a key export hub for the region, is currently operating at just 35% of its capacity.
Johnny Moloto, head of corporate and regulatory affairs at BAT Sub-Saharan Africa, commented: “We have tried everything to ensure we don’t have to close this facility, which has been a part of the Heidelberg community since 1975… But when three-quarters of your market is illicit, there’s a limit to what any company can do. We’ve reached that limit”.
BATSA confirmed that it is not exiting the South African market entirely but will transition to an “import-based supply model” to continue serving consumers. The closure will also impact the wider Lesedi community, including logistics providers and local suppliers who depend on the facility.
The move follows the company’s earlier exit from Mozambique.
Source: Tobacco Journal International / Business Day / Moneyweb / Tobacco Reporter
