U.S. Smokeless Tobacco Company LLC (USSTC), a subsidiary of Altria Group, Inc. (NYSE: MO), announced plans to consolidate certain operations as part of a long-term strategy to modernize its manufacturing footprint and drive operational efficiencies.
USSTC will transition manufacturing operations from its Nashville, Tennessee plant to a new facility to be constructed on an existing campus in Hopkinsville, Kentucky. Production in Nashville will wind down gradually, with operations expected to conclude in early 2028. This phased approach is designed to support continuity of operations and a smooth transition for employees. The company intends to sell its over 30-acre campus near the heart of Downtown Nashville.
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“Modernizing our manufacturing capabilities is essential to position USSTC for long-term success in an evolving market. By streamlining operations and concentrating production at a purpose-built facility, we can improve efficiency, enhance resilience and better support the future needs of our business,” said Michael Brace, President and CEO of USSTC. “While this is the appropriate move for our future, we understand the impact this decision has on our Nashville colleagues, their families and the community, and we are committed to supporting our employees through this transition.”
Nashville employees will be encouraged to apply for available positions in Hopkinsville and Richmond, Virginia. Those not pursuing relocation will have access to generous severance packages that can include outplacement services and additional transition support.
The Nashville facility primarily is used as a finishing and packaging operation for leading brands Copenhagen® ,Skoal®, Red Seal® and Husky®. Rather than splitting processes between Nashville and Hopkinsville, this move allows nearly all processing, production and finishing to be completed in Hopkinsville. Additionally, transitioning production capacity from Nashville’s 800,000-square-foot legacy plant to a modern, 270,000-square-foot Hopkinsville facility will eliminate fixed cost inefficiencies and generate operational savings.
“While our operation in Nashville will close in 2028, we remain committed to producing our leading smokeless tobacco brands using 100 percent American tobacco grown primarily in Tennessee and Kentucky,” Brace said. “Our connection to both states runs deep, and we value our growers and partners who help carry on our company’s storied two century-old legacy.”
USSTC and its predecessor companies have been part of the Nashville community for more than 100 years, operating on a campus that today employs more than 300 people. The company also has deep roots in Hopkinsville, where it has maintained operations for more than 100 years and employs approximately 200 full-time employees, as well as seasonal workers.
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