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The state-of-the-art factory, which was capable of producing 1.5 million cigarettes a day

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Secret tobacco factory dismantled

One of Northern Ireland’s biggest ever illegal tobacco factories has been dismantled after a raid in Newry.

The state-of-the-art factory, which was capable of producing 1.5 million cigarettes a day, was uncovered in an operation by HM Revenue and Customs (HMRC) with support from the Police Service of Northern Ireland (PSNI).

The sophisticated set up included professional extraction systems, insulation to hide noise and expensive machinery.

More than 1.25 million cigarettes and nine tonnes of tobacco were recovered from the site, worth more than £3 million in unpaid duty.

Dermot Clarke, Operational Lead in HMRC’s Fraud Investigation Service. said:

“This was one of the most sophisticated tobacco factories we have ever uncovered in Northern Ireland and this will be a significant blow to the organised criminals we believe are behind it.

“The illicit tobacco trade steals money from public services, undercuts legitimate businesses and funds other crimes that impact our communities.

“We encourage anyone with information about the illegal sale of tobacco or alcohol to report it to HMRC online.”

Seven men have been arrested and investigations are ongoing.

Notes to Editors

1.An HMRC spokesperson is available for interview.

2.The total duty evaded on the seized cigarettes and tobacco is more than £3.1m.

3.The raid took place on 06 October 2025.

4.The men were arrested on suspicion of fraudulent evasion of duty contrary to section 170(2) of the Customs and Excise Management Act (1979).

5.Anyone with information about any type of tax fraud is encouraged to report it online.

6.Follow HMRC’s Press Office on X @HMRCpressoffice.

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