Tobacco producer to open new factory in Diekirch

(aa/JB) Tobacco producer Heintz van Landewyck (HVL) is to close its factories in Hollerich and Ettelbruck and move to a single site in Diekirch.

The firm expects to begin construction of the new 60-million-euro factory in the Fridhaff industrial zone early next year in time for it to open in 2020.

The new location will produce the same volume of tobacco currently manufactured over the two existing sites with fewer staff.

According to HVL, no jobs are threatened but some workers will be reassigned to new tasks. During the firm 200th anniversary celebrations earlier in the summer, CEO and Chairman Christian Greiveldinger said that the firm did not choose Luxembourg for tax reasons, describing the firm as like a “Luxembourg family”.

The decision to consolidate operations on a new site in Luxembourg appears to confirm the firm's commitmen to the country. HVL employs 2,000 people around the world, of which 800 are based in Luxembourg.

The Hollerich production site has been operational since 1897 and the Ettelbruck facotry since 1963. HVL has operations in Germany (rolling tobacco) and Hungary, where it makes filter sleeves.

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