US company Philip Morris is to stop making cigarettes in Australia by the end of the year.<br /><br />It is closing its plant in Victoria state – after 60 years – with the loss of about 180 jobs<br /><br />Philip Morris blamed Australian government regulations which it says restrict its exports to Asia.<br /><br />It will shift production to South Korea, where it will not have to abide by so-called “reduced-fire risk” laws introduced in Australia in 2010. <br /><br />Those laws mandate the use of particular paper and manufacturing methods to ensure that a cigarette self-extinguishes when dropped on the ground.<br /><br />The company had invested heavily in the Australian factory from 2006 to 2009 to capitalise on increased demand in Asia. <br /><br />But it said the reduced-fire risk requirements led to taste changes that did not match Asian consumer preferences.<br /><br />Philip Morris insisted the factory closure was not related to the plain packaging laws iIntroduced in Australia in December 2012.<br /><br />Those laws enforced standardised packaging on all tobacco products. Companies had to replace logos and branding with graphic images of smoking-related diseases on a drab background.
