Famous Brand Enters Into Batch Production Under Authorization

The famous Baisha cigarette brand of Changsha Cigarette Factory in south central China's Hunan Province has entered into batch production at Baoji Cigarette Factory in northwest China's Shaanxi Province, after success in trial production over the past few months. In July 2004, Changsha Cigarette Factory and Baoji Cigarette Factory – both among the 36 key Chinese tobacco manufacturers designated by the State Tobacco Monopoly Administration (STMA) – signed an agreement on cooperation in cigarette production, under which Changsha Cigarette Factory authorizes Baoji Cigarette Factory to produce cigarettes using its famous Baisha brand. Baoji Cigarette Factory started trial production of Baisha in August, and put the products on local markets. Results of a market survey on the sale of Baisha produced by Baoji Cigarette Factory over a one-month period indicated the products were well received by local consumers. On the basis of the success in trial production and sales, Baoji Cigarette Factory started batch production of Baisha on September 23, with powerful support extended by Changsha Cigarette Factory. According to Changsha Cigarette Factory, the production of Baisha at Baoji Cigarette Factory is under its strict supervision and quality control. Changsha Cigarette Factory hopes that the production of Baisha at Baoji Cigarette Factory will not only contribute to meeting the demand for the supply of Baisha in Shaanxi Province, but will also help pave the way for its further development of Baisha as a highly competitive brand.