BAT to Close Heidelberg Plant – Blames Illicit Trade
Staff Writer
– January 17, 2026
3 min read
British American Tobacco South Africa (BAT) says it will shut its cigarette manufacturing plant in Heidelberg, Gauteng, and end local production in South Africa by the end of 2026, blaming the scale of illicit cigarettes for making local manufacturing commercially unviable.
The company said it will remain active in South Africa but shift to an import-based supply chain to continue serving adult consumers. BAT said the illicit market is now estimated at about 75% of total cigarette sales, while the Heidelberg facility is operating at about 35% of capacity because of volume losses.
BAT said the closure could affect about 230 jobs in Heidelberg and warned of knock-on effects for suppliers, logistics providers, and contractors linked to the plant. The company also argued that weak enforcement and policy failures have helped fuel illicit trade and put other legitimate manufacturers at risk.
The Democratic Alliance said it was deeply concerned by the decision, describing the closure as a blow to workers and their families in Heidelberg and a warning about the economic damage caused by illicit trade. The party said that billions in tax revenue are lost each year while criminal syndicates profit. It called for stronger action by the South African Revenue Service and for increased funding to clamp down on illicit trade.
BAT said it had begun a formal consultation process with employees and unions over the potential job losses, that it expected the process to conclude by the end of March, and that it had planned a full shutdown by the end of this year.
The company said it has operated in Heidelberg since 1975 and would consider reinvesting in local production if the illicit trade environment changes substantially and sustainably.
