The firm, which is currently based in two locations (Hollerich and Ettelbruck), has decided to adopt a new strategy to stay in Luxembourg by optimising production in one single place.

The new site, which will occupy 36ha of the new 45ha industrial zone near the Nordstad, will cost around €60m, and is scheduled to open at the end of 2018.

The production will be progressively increased in 2019 to manufacture the 50m cigarettes daily, and by 2020, the new factory should become the only site for the company.

However, there will be fewer employees as the company, founded in 1847, announced it will employ between 200 and 300 production line staff at the new facility (out of the current 300). Staff who will retire will not be replaced.