Xiamen Cigarette Factory to Take Over Jinqiao Brand

Source from:  04/12/2004 04/12/2004

Xiamen Cigarette Factory is expected to take over the brand of Jinqiao when Huamei Cigarette Co. Limited, the producer of Jinqiao, stops production on September 3. Huamei Cigarette Co. was founded in July of 1986, the first joint venture in Chinese cigarette industry. It was put into production in 1988. The company produces 50,000 cartons of Jinqiao and Camel (2.5 billion cigarettes) annually. Statistics showed that as the first window to the reform of Chinese tobacco industry, the composite economic index of Huamei Cigarette Co. topped in the national tobacco industry in 1990. Currently, Huamei has had three shareholders including Xiamen Cigarette Factory, Jianfa Group and Japan Tobacco. The two sides of the joint venture have decided not to extend the contract over cooperation after it expires on September 3. According to industrial sources, it is imperative for Huamei Cigarette Co. Limited to increase its strength rapidly so as to compete with international tobacco giants after China’s entry into the STMA. Born in the early years of the reform and opening up of Chinese tobacco industry, Huamei is not merely regarded as a window for foreign exchange now. The Jinqiao brand of cigarettes made by Huamei adapts to the global demand for light, blended cigarettes. The soft-packaged Jinqiao was granted the title of Most Salable Brand in China in 1989 by China National Tobacco Co. immediately after it was put into production in the year, while it was designated as state-level high-quality cigarette product by the STMA in 1994. The hard-packaged Jinqiao has been also popular among consumers and enjoying fairly high popularity and competitiveness on the domestic market. After Xiamen Cigarette Factory continues to produce Jinqiao cigarettes, the previous cigarette transferring and allocating station in Xiamen will continue to function, which is benefit the sales of Jinqiao cigarettes on the national market. Jinqiao is expected to become one of the leading brands of Xiamen Cigarette Factory. It is estimated that the scale of production of Jinqiao cigarettes will rise to a new stage within the next two or three years. Issues concerning whereabouts of fixed asset and employees of Huamei Cigarette Co. Limited have been under discussions so far between both sides. Enditem SOURCE FROM: Xiamen Evening News