PMCR informed about closing down small plant in Straznice, transferring production into its Kutna Hora plant. As a result severance payments and other one-off costs like asset impairments will reach CZK 52.5m. Consolidation of production process should bring annual savings of CZK 12.6m. Our view: PMCR used Straznice plant only for preparation and partial processing of the tobacco leaves there. Plant with 36 employees plays only marginal role in the whole production process. We see the news as neutral as expected savings of CZK 12.6m annually represent only some 1% of projected personnel and other operating expenses. Nonetheless it is one of new management plans in order to racionalize the structure of the company and slash costs which will be more visible only in 2 to 4 years.