North Carolina-based R.J. Reynolds Tobacco Co. is closing its cigarette manufacturing plant in Puerto Rico after 40 years of business.
Spokeswoman Denise Santos says 60 employees will be affected when the plant closes at the end of August.
Santos says the plant is closing because it would be too expensive to make upgrades required by new federal regulations and because an increase in taxes led to a drop in manufacturing volume.
She said Friday that plants in North Carolina will assume the additional production.
The plant produces cigarettes for the Puerto Rico market as well as private-label cigarettes for the U.S. market. It is in the southeastern town of Yabucoa.