Provincial Tobacco Industry Meets on Reform of Commercial Sector

Source from:  STMA 01/05/2007

Fujian Provincial Tobacco Monopoly Administration - the regulator of the tobacco industry in southeast China's Fujian Province - recently held a meeting on reform of the commercial sector of the provincial tobacco industry leading to the establishment of a parent-subsidiary company system. After the establishment of a parent-subsidiary company system, Fujian Provincial Tobacco Company will be renamed as Fujian Provincial Subsidiary to China National Tobacco Corporation. As a subsidiary wholly owned by China National Tobacco Corporation, Fujian Provincial Tobacco Company will have under it nine prefecture- or city-level tobacco companies and two other entities - Fujian Haisheng Investment Management Co., Ltd. and Fujian Provincial Tobacco Import-Export Company. It was emphasized at the meeting that 2006 was the first year of reform of the commercial sector of the provincial tobacco industry leading to the establishment of a parent-subsidiary company system. Therefore, it urged all the units concerned to unify their understanding and attach great importance to the reform and practically strengthen capacity building of the prefecture- or city-level tobacco companies as subjects at the marketplace. Since the beginning of 2006, the State Tobacco Monopoly Administration has strengthen efforts to promote reform of the commercial sector of China's tobacco industry as a whole, introducing the parent-subsidiary company system. By December 4, 2006, 21 of the 33 provincial tobacco industries in China had completed reform of their commercial sectors leading to the establishment of a parent-subsidiary company system. Enditem