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Altria to Close U.S. Tobacco Plant, Save $335 Million (Update7) 

Altria Group Inc., the world's largest cigarette maker, will close its North Carolina factory and increase European production to save $335 million a year by 2011.

The shutdown of the plant in Cabarrus County will result in a one-time charge of $325 million in the second quarter, Altria said today in a statement.

The New York-based tobacco company may be preparing to spin off its Philip Morris International unit, analysts and investors said. Factories in Europe will take over production of Marlboros and other cigarettes bound for Japan and the Middle East currently being made in North Carolina. All of Altria's U.S. output will be shifted to Richmond, Virginia.

``It is the first logical step to start the process of splitting the company in two,''

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