“Ghost Factory” Busted: €89 Million Illegal Cigarette Operation Dismantled

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by Maximiliano Crocamo

Interviews: Regional commander, Brigadier General Fabrizio Nieddu; Public prosecutor, Patrizia Castaldini; Commander of Trieste, Brigadier General Stefano Commentucci

The Guardia di Finanza’s Economic and Financial Police Unit in Trieste, acting on behalf of the Direzione Distrettuale Antimafia (DDA) of Trieste, has dismantled a large-scale clandestine cigarette manufacturing operation in Friuli Venezia Giulia, according to an official press release issued by the Comando Provinciale di Trieste under Operation “Ghost Factory.”

Investigators identified three interconnected sites in the province of Udine: a 2,156-square-meter production facility in Gonars, a 780-square-meter storage warehouse in Remanzacco, and a vehicle exchange area in Buttrio. The factory was capable of producing up to one million cigarettes per day using state-of-the-art machinery, described by industry experts as comparable to that used by legitimate manufacturers.

The facility operated for approximately five months, producing an estimated 137 million cigarettes (6.85 million packs). Investigators valued the total illicit activity at approximately €89 million, driven by significant price differentials across European markets: a pack of Marlboro retails at €17.80 in the United Kingdom, €13 in France, and €8 in Germany, compared to an average of €6 in Italy. Production costs at the clandestine site, however, amounted to only a few tens of cents per pack.

During the raid, 20 foreign nationals—mainly from Eastern European countries—were found working under what authorities described as prohibitive conditions. They were housed in dormitory-style accommodations inside the factory and reportedly not permitted to leave.

The DDA of Trieste requested and obtained precautionary custody orders from the Trieste GIP against two Italian nationals residing in Udine and Trieste. A third individual, a foreign national, was arrested in flagrante delicto. In total, 29 individuals were reported for criminal association, smuggling, counterfeiting, and facilitating illegal immigration.

Seizures included more than 77 tonnes of product worth over €18 million, industrial machinery valued at €1.5 million, two articulated trucks worth more than €200,000, and 7 million units of cigarette production materials.

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Maximiliano Crocamo
Maximiliano Crocamo, originally from Friuli Venezia Giulia with Australian and Venezuelan roots, explores the city’s growing international presence through the stories of locals and visitors as a junior reporter for InTrieste.

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