Secret tobacco factory dismantled in major HMRC operation in Northern Ireland

A secret tobacco factory — one of the largest and most sophisticated ever uncovered in Northern Ireland — has been dismantled following a major operation led by HM Revenue and Customs (HMRC) with support from the Police Service of Northern Ireland (PSNI).

The state-of-the-art facility in Newry was capable of producing around 1.5 million cigarettes per day, according to HMRC.

The site was equipped with professional extraction systems, sound insulation, and high-end industrial machinery, all designed to conceal its illegal operations.

During the raid on 6 October 2025, officers recovered more than 1.25 million cigarettes and nine tonnes of tobacco, representing an estimated £3.1 million in unpaid duty.

Seven men were arrested on suspicion of fraudulent evasion of duty, contrary to section 170(2) of the Customs and Excise Management Act (1979). Investigations are continuing.

‘A significant blow to organised crime’

Dermot Clarke, Operational Lead in HMRC’s Fraud Investigation Service, said the discovery was among the most advanced illegal operations the agency had encountered.

“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,” Mr Clarke said.

He added that illegal tobacco operations have serious social and economic consequences.

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

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

Appeal for information

HMRC has urged members of the public to report any suspicions or information about tax fraud, including the illegal sale of tobacco or alcohol, through its official online reporting channels.

A spokesperson confirmed that an HMRC representative is available for interview, and emphasised that tackling tax evasion and organised criminal activity remains a priority for the agency.

The discovery marks one of the largest illegal tobacco seizures ever made in Northern Ireland, and officials say the operation has dealt a major setback to the criminal network behind it.