U.S. Smokeless Tobacco Company LLC, a subsidiary of Altria Group Inc. (NYSE: MO), announced plans to close its Nashville, Tennessee manufacturing plant and relocate operations to a new facility in Hopkinsville, Kentucky.

The Nashville plant will wind down operations gradually, with closure expected in early 2028. The facility currently employs more than 300 people and handles finishing and packaging for brands including Copenhagen, Skoal, Red Seal and Husky.

Production will move to a new 270,000-square-foot facility to be built on an existing campus in Hopkinsville, where the company already employs approximately 200 full-time workers and seasonal staff. The consolidation will replace operations at Nashville's 800,000-square-foot plant.

"Modernizing our manufacturing capabilities is essential to position USSTC for long-term success in an evolving market," said Michael Brace, president and CEO of USSTC.

Nashville employees will be offered positions in Hopkinsville and Richmond, Virginia. Workers not relocating will receive severance packages including outplacement services and transition support, according to the company statement.

The company plans to sell its Nashville campus, which spans more than 30 acres in downtown Nashville. USSTC has operated in Nashville for more than 100 years and has maintained operations in Hopkinsville for a similar period.

The consolidation aims to eliminate fixed cost inefficiencies by moving nearly all processing, production and finishing to a single location rather than splitting operations between two facilities.