Imperial Tobacco, the world's fourth largest cigarette-maker, has announced plans to shut its Liverpool plant with the loss of all 140 jobs. The UK company, which is headquartered in Bristol, said it was aiming to streamline its production in Europe.
Imperial, which makes the UK's best selling cigarette brand - Lambert & Butler - said the closure would be completed by March next year.
It is also closing its factory in Lahr, Germany, with the loss of 275 jobs.
Imperial said its operations in Liverpool, which packs its Golden Virginia hand-rolling tobacco, would be transferred to sister factories in Nottingham and Mullingar in the Republic of Ireland.
It estimates that the closure of the Liverpool and Lahr plants will generate annual cost savings of �7m.
Imperial is the UK's second largest tobacco company, behind British American Tobacco but ahead of Gallaher.