NEW YORK (AP) -- Philip Morris International will end cigarette production at its factory in the Netherlands as Europeans break the smoking habit for both financial and health reasons.

The company said Friday that it has started talks with employee representatives on a proposal to end production at the factory in Bergen op Zoom. If production is ended, it could impact about 1,230 of the current 1,371 employees.

Philip Morris International, based in New York, reports that in the last four years, cigarette volumes have weakened in Europe due to economic softness, illicit trade and as consumers shift to cheaper alternative products. The company said that volume recovery is highly unlikely.

Europeans are also quitting.

Philip Morris Holland anticipates cigarette production at the factory will end by October.

The Wall Street Journal reported earlier this week that Philip Morris plans to shut down its sole Australian factory, ceasing making cigarettes in Australia by year's end after 60 years of manufacturing in Melbourne.

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