BAT South Africa to shut Heidelberg plant by end of 2026

British American tobacco South Africa will close its manufacturing plant in South Africa by the end of 2026.

However, the company emphasised that it remains committed to the South African market and will transition from a local manufacturing model to an import-based supply chain to continue serving adult consumers in the market.

The multinational company has cited the impact of the illicit cigarette trade on the local market for its decision.

Approximately 75 percent of the domestic cigarette market is illicit, costing the fiscus about 40 billion rand between 2020 and 2025.

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BAT said about 230 employees at its Heidelburg manufacturing plant will be affected.

The company’s spokesperson Johnny Moloto said BAT is not leaving South Africa, adding that the tobacco giant has reached its limit with three quarters of the market dominated by illicit trade

"We’ve raised concerns about illicit trade for years providing data and proposing solutions while some in government have genuinely tried to help the overall response hasn’t been enough to protect legitimate businesses and the jobs they create. With the illicit industry at the size and scale it is only a coordinated whole of government response can make a difference and impact to tackling this scale of illicit," said Moloto.