MANILA, Philippines — Tobacco firm PMFTC Inc. is streamlining manufacturing operations at its facility in Marikina amid low production volume.
The firm said it is also shifting resources by investing in business process outsourcing (BPO).
“In light of a steep decline in production volumes resulting in significant idle capacity at the Marikina plant, PMFTC Inc. confirms making the difficult decision to streamline its manufacturing operations that has been impacted by the market conditions over the past years,” the firm said in a statement yesterday.
The number of workers to be affected by the move was unavailable as of press time yesterday.
“With the economic challenges brought about by the pandemic, our top concern is to ensure the welfare of our employees who are affected by this decision. We are working closely with them to provide the assistance they need in this difficult time,” PMFTC said.
The firm is providing separation packages in excess of what is required by law.
PMFTC is also providing a viable care program to help the affected workers as they transition to a new source of livelihood.
While PMFTC is streamlining manufacturing operations in Marikina, the firm said it is expanding its presence in the country through investments in a new business venture, BPO services.
“The reinvestments in the BPO industry will more than offset the streamlining at the Marikina plant with the opening of new job opportunities in the planned shared services and call centers within the next two years,” the firm said.
Apart from Marikina, PMFTC also has a manufacturing facility in Batangas.
PMFTC is a partnership between Lucio Tan’s Fortune Tobacco Corp. and US cigarette giant Philip Morris.
Late last month, it was announced that PMFTC is merging with Philip Morris Manufacturing Philippines Inc.
PMFTC will be the surviving corporation in the merger which would take effect on June 1 this year.
The merger is in line with an internal restructuring process and is not seen to affect operations, earnings and ownership of PMFTC.