General Tobacco of Mayodan announces job cuts

General Tobacco Co. will cut 31 jobs from its Mayodan plant.
Melissa Chantres, a spokeswoman, said the job cuts would trim the workforce to 95 full-time employees. General Tobacco moved from Miami to its current Mayodan plant on South Ayersville Road in 2007.
The company released a statement Friday afternoon.
“In an effort to cut operating costs, it is with regret that General Tobacco has had to layoff 31 employees due to today’s economic volatility. As is the case with most U.S. industries, General Tobacco has been affected by the sweeping downturn in consumer spending. It is our sincerest hope that this economic hardship, being felt by all, will pass quickly so that we may bring these employees back, who we consider family,“ said J. Ronald Denman, executive vice president and general counsel for the company.
General Tobacco begun manufacturing and distributing its first U.S.-made tobacco products at the Mayodan plant in March. The company makes GT One, Silver, 32 Degree cigarettes and Vaquero Little Cigars
According to an agreement with the town and county, the company is eligible for a combined tax rebate of $3 million if it meets certain employment targets. In June 2007, company officials said 200 jobs by would be created by 2010 to go along with a $55 million investment in buildings and equipment.
In October, the company announced plans to sue suing 52 attorneys general and 19 U.S. and foreign tobacco companies. It is pursuing treble damages in excess of $1 billion from its competitors, which include R.J. Reynolds Tobacco Co., Philip Morris USA and Lorillard Tobacco Co. General Tobacco also is pursuing preliminary injunctive relief from the landmark tobacco settlement. The settlement agreement is a comprehensive accord formed in 1998 with the attorneys general of 46 states and five territories that has fundamentally changed how tobacco is marketed, advertised and promoted. General Tobacco claims its competitors conspired with the states to set up the agreement so that later market entrants would have to pay the states substantially more than some competitors pay.
General was founded in 1997 and is the sixth largest U.S. tobacco manufacturer, with $300 million in sales in 2007. It moved its headquarters from Miami to Mayodan as part of a strategic move to be closer to the heart of the U.S. tobacco industry.