Malawi: Alliance One in investment drive

Source from:  By Tione Andsen  05/14/2007

Malawi, Friday, May 11: A leading Tobacco Processing Company in Malawi, Alliance One Tobacco Company Limited has invested over US$ 517,857.4 to construct a new processing plant in the country's capital Lilongwe. The expansion programme the company has embarked would see the plant turning into the most effective tobacco processing plant in Africa. It is said once the construction work would be through the plant would boast the processing capacity of threshing lines, hand stemming facilities with a daily capacity of 20 tonnes. Alliance One Managing Director, Allistair Craik said the expansion programme was expected to cost them over US$ 518,000.00 after completion. He said the move would help his company to shift from Mozambique where they were processing their tobacco purchased in Malawi. "The work would be completed within the next 12 months and the company would end up having the biggest and efficient tobacco processing factory on the continent," Craik viewed. The Managing Director hinted that his company decided to take up the challenge to invest because there was bright future in the industry in the country. He said the development would attract more tobacco buyer to look for Malawi burley tobacco. Malawi's Ministry of Industry and Trade, Dr Ken Lipenga viewed the investment as a true manifestation, confidence and trust the private sector has in the government of Malawi and the country as a whole. "This is not a small investment and it would not be made before making sure that there is of good returns. As government this shows a vote of confidence in us," he said. Lipenga observed it was encouraging that tobacco companies were still investing in the country despite continued threats from anti-smoking campaigners. The minister said government considers tobacco companies as partners in development and key players in driving the private sector into making tangible investments for the country. Lipenga asked tobacco companies in the country to think of venturing into cigarette manufacturing and other value added products from tobacco. Alliance One Company was borne out of the merger of tow tobacco buying and processing firms of Dimon and Stancom in 2001 and trade in 45 countries globally. Enditem