STMA Chief Hears Reports on Efforts for Upgrading Cigarette Production

Source from:  Hongyunhonghe Group 04/19/2010

Director-General Jiang Chengkang of the State Tobacco Monopoly Administration (STMA) led a group of senior officials with the relevant departments of the STMA to hear reports given by top leaders of the HongyunHonghe Tobacco Group in southwest China's tobacco-producing Yunnan Province on its planning guidelines and measures for upgrading cigarette production on April 11. After hearing the reports, Jiang pointed out that since HongyunHonghe is a leading player in efforts of China's tobacco industry for upgrading cigarette production, HongyunHonghe has to intensify efforts to promote its cigarette production to a higher level, which will be of vital significance to all efforts of the tobacco industry for cigarette production promotion. He made the following instructions to this effect: Firstly, how to meet the market demand and how to increase the core competitiveness of HongyunHonghe's existing brands will be of fundamental and vital significance to its efforts for upgrading cigarette production. Efforts should be made to upgrade cigarette production and increase the competitiveness of brands amid market competition. Secondly, HongyunHonghe must accurately define the status of its two leading cigarette brands - Yunyan and Honghe. Specifically, steps should be taken to make unified arrangements for the development of these two brands, in order that they will complement each other with the advantages of each, and in order that they will realize coordinated development. For Yunyan, it must be turned into a high-grade and high-end cigarette brand. Thirdly, in making plans and setting targets for development, HongyunHonghe must well handle the relationship between the "532" and "461" development targets of the STMA, and accurately set all targets. (The STMA's "532" development target provides that in a period of five years or longer, efforts will be intensified to develop two well-known cigarette brands each with an annual output of 5 million cases, three each with an annual output of 3 million cases and five each with an annual output of 2 million cases. And, the "461" development target of the STMA provides that by the year 2015, efforts will be intensified to develop 12 highly influential cigarette brands each capable of generating over 40 billion yuan in annual sales income, including six each capable of generating over 60 billion yuan in annual sales income, and one capable of generating 100 billion yuan in annual sales income.) For Yunyan, HongyunHonghe must strive to turn it into a big competitive cigarette brand with an annual output of 3 million cases capable of generating 80 to 100 billion yuan in annual sales income. For Honghe, HongyunHonghe must strive to rank it among the "532". Fourthly, in targeted reform of the structure of cigarette brands, HongyunHonghe should fully take into account the extent of acceptance of the market, and should consider how to realize economic growth in both the manufacturing and commercial sectors of the tobacco industry. And fifthly, HongyunHonghe should earnestly analyze its own characteristics, advantages and disadvantages, in order to make the characteristics more remarkable, give further play to the advantages and pertinently overcome the disadvantages. The reports were separately given by Wu Yi, president of HongyunHonghe, and Xu Liwei, secretary of the Communist Party Committee at HongyunHonghe. Enditem