The No. 2 cigarette maker in the country has told its employees that it will no longer permit smoking inside its office buildings starting next year.

Reynolds American Inc. US:RAI, the maker of Camel cigarettes, previously allowed employees to light up at their desks or offices, in conference rooms, hallways and elevators, but had banned smoking from its manufacturing facility, cafeteria and fitness center, according to Reynolds spokesman David Howard.

Reynolds is planning to build separate facilities for employees who want to smoke inside, Howard said. The smoking ban goes into effect Jan. 1, 2015, and applies to all office buildings across the U.S. including subsidiaries, but doesn’t include smokeless tobacco products such as e-cigarettes.

“We believe it’s the right thing to do and the right time to do it,” Howard told MarketWatch. “It will better accommodate both non-smokers and smokers who work in and visit our facilities.”

Howard also cited data from health organizations reflecting a smaller population of smokers.

Reynolds has 5,200 employees and about 20% are smokers, according to Howard.

Smoking rates have fallen steadily since 1965 when 42% of U.S. adults smoked, surveys from the Centers for Disease Control and Prevention show. CDC estimates that number declined to about 18%, or 42 million Americans, in 2012. Researchers and doctors say smoking bans, cigarette taxes and media campaigns exposing tobacco company marketing techniques all have likely played roles in declining smoking rates over the years.

Earlier this week, Reynolds reported third-quarter profit that topped analyst estimates but said cigarette shipments at its RJR Tobacco unit fell 2.9%, steeper than the tobacco industry’s decline of 2.3%. The company also said it was expanding its Vuse e-cigarette brand to new retail outlets as it battles waning demand for cigarettes and as the market for e-cigarettes grows.

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