Reynolds American To Bring All VUSE Vapor Cigarette Manufacturing In House

Reynolds American Inc. said it is consolidating the manufacturing operations for VUSE digital vapor cigarettes in an effort to cut costs and improve efficiency. Effective immediately, VUSE cartridges will no longer be produced at a contractor's facility in Kansas. All production will now occur in house at the company's manufacturing facility in Tobaccoville, N.C. The company expects to record a $100 million charge in the third quarter as a result of the consolidation. "As the vapor category continues to develop, we need to make sure our manufacturing operations are efficient and cost-effective in meeting anticipated demand," said Chief Executive Susan Cameron. The stock, which was unchanged in after-hours trade, has shot up 19% over the past three months while the S&P 500 has lost 6.9%.

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