Kanengo Tobacco Processors Limited (KTPL) has announced the closure of its tobacco processing facility at Kanengo in Lilongwe.

According to the statement released on 24 March, the factory has been “undergoing difficult financial times due to a number of factors within and outside Malawi”. The factors are, (including but not limited to) the reduction in national crop size, reduced international demand for Malawi air-cured burley, high competition of tobacco processing in Malawi due to high installed capacity and certain International sanctions on Malawian tobacco.

The company has regretted the retrenchment of 179 permanent workers at the facility, following its closure. “We will ensure that all retrenched workers are fairly compensated according to the laws governing employment in Malawi.” said the statement by the Board of Directors.

KTPL, a Malawian tobacco processor, started its operations in September 2000 with the opening of a state of the art processing facility, which at its peak processed 32 million kilograms of tobacco