Cigarette Makers, Tobacco Growing Region Sign Pact on Establishment of Exclusive Base

Source from:  Henan Province 08/02/2005

The three tobacco manufacturing enterprises in central China's Henan Province - Xinzheng Tobacco Group, Xuchang General Cigarette Factory and Zhengzhou General Cigarette Factory - have jointly signed an agreement with Sanmenxia City Tobacco Subcompany in the same province on the establishment of exclusive high-quality leaf tobacco production and supply bases in the city. On July 26-27, a delegation of top leaders of the three tobacco manufacturers, led by the Material Supply Department of Henan Provincial China Tobacco Industry Corporation, held talks with Sanmenxia City Tobacco Subcompany before signing the agreement, which is valid for three years. Under the agreement, Sanmenxia City, which is a traditional tobacco growing region, will supply the three tobacco manufacturing enterprises with 240,000 dan (12,000 tons) of high-quality leaf tobacco in 2005 - 120,000 dan (6,000 tons) for Xinzheng Tobacco Group, 60,000 dan (3,000 tons) for Zhengzhou General Cigarette Factory and also 60,000 dan (3,000 tons) for Xuchang General Cigarette Factory. During the talks, representatives of the three tobacco manufacturing enterprises discussed with Sanmenxia City Tobacco Subcompany a wide range of issue concerning the purpose, principles and scope of cooperation between them, the model of leaf tobacco production and supply, leaf tobacco production organization and management, rights and obligations both sides, quality requirement, investment policy, etc, reaching broad consensus. The agreement has been the first of its kind signed following separation of the management of the tobacco manufacturing sector of the provincial tobacco industry from the management of its commercial sector over the past year. Enditem