Durham's long-diminishing ties to tobacco have received a substantial boost with the return of cigarette manufacturer the Liggett Group, but officials are unsure of the move's long-term effects on the city.
The Liggett Group, formerly Liggett & Myers, announced on March 31 that it will be moving its corporate headquarters back to Durham.
The move should not be viewed as a sign of expansion, said Liggett spokeswoman Carol Jova. It will not lead to an immediate increase in job opportunities.
"The move was made to consolidate operations for more effective communication," Jova said. Most of the Liggett Group's 900 workers remained in Durham after the company executives' 1991 move to New York, according to the News and Observer of Raleigh.
But plans to concentrate on generic cigarettes could lead to a larger share of the cigarette market and future growth, Jova said.
"Generics are where markets are growing the fastest," she said.
City officials are optimistic about the move. "It gives Durham some feeling that Liggett's here to stay," said Durham Mayor Harry Rodenhizer.
The most positive aspect of the Liggett move is that Durham was able to present itself to company executives as a quality place to live, said Tom White, a member of the greater Durham Chamber of Commerce.
"What they assume is that their folks can come down here and be comfortable. This is a nice place to work," White said.
White said he hoped the Chamber of Commerce could build on the Liggett success and continue to help stimulate the economy by drawing other company executives to the Durham area.
Liggett's ties to Durham date to its creation in 1911, when it was one of the four tobacco companies that emerged from the government's attack on James B. Duke's huge tobacco trust, the American Tobacco Co. Of the four, Liggett alone has retained ties to Durham.
Liggett moved its corporate headquarters to New York in 1991. That shift, along with subsequent layoffs and reductions in workers' hours made community leaders uneasy about the company's future in Durham, despite the fact that Durham remained the company's manufacturing base.
White stressed the value of the new Liggett executives to the Durham community.
He cited recently retired K.v.R. Dey, a former president of Liggett, as an example of the positive impact past company executives have had on the community.
Dey has long been heavily involved in the Durham school system and various charitable organizations, such as the United Way, White said.
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