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Wednesday, October 29, 2003

B&W Tobacco move to cost city millions



The Associated Press

LOUISVILLE - For this city, the loss of Brown & Williamson Tobacco Corp. uproots one of the last remnants of a once-vibrant industry. For beleaguered tobacco farmers, it injects more uncertainty into a vocation already at a crossroad.

Brown & Williamson, based in Louisville since the 1920s, will leave its old Kentucky home by mid-2004 - when it merges with rival R.J. Reynolds Tobacco Co., based in Winston-Salem, N.C.

The deal announced Monday combines two of the nation's largest tobacco companies. The merged operation will be called Reynolds American Inc.

"It's an emotional loss because of the history and because of how much they have contributed to this community," said Carmen Hickerson of Greater Louisville Inc., the metro chamber of commerce.

Paul Coomes, a University of Louisville economics professor, said Tuesday that B&W's departure would drain more professional jobs from the city and increase unoccupied office space downtown. The city also will lose a generous contributor to charitable and civic groups, he said.

B&W spokesman Steve Kottak said the company's payroll, retiree pensions, corporation contributions and local and state taxes amounted to more than $200 million annually.



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Tristate summary
B&W Tobacco move to cost city millions

 

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