Cigarette Makers, Tobacco Growing Regions Sign Pact on Leaf Tobacco Supply

Source from:  Tobacco.gov.cn 08/19/2005

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 agreements with Sanmenxia City and Luoyang City in the same province on the establishment of exclusive high-quality leaf tobacco production and supply bases in the two cities and regular supply of high-quality leaf tobacco from them. Under the agreements, Sanmenxia and Luoyang Cities will supply the three tobacco manufacturers with 570,000 dan (28,600 tons), 680,000 dan (34,000 tons) and 720,000 dan (36,000 tons) of high-quality leaf tobacco respectively in 2005, 2006 and 2007, while the latter will extend necessary assistance to the two cities in developing exclusive high-quality leaf tobacco production and supply bases. The signing of the agreements signifies substantive strengthening of cooperation between tobacco manufacturers and tobacco-growing regions in Henan, a major tobacco-producing province in China. In order to properly guide, organize and coordinate efforts of the local tobacco manufacturers to invest in the establishment of exclusive high-quality leaf tobacco production and supply bases, and ensure the supply of high-quality leaf tobacco for tobacco manufacturers to increase the production of cigarettes of competitive brands, Henan Provincial China Tobacco Industry Corporation has formulated a set of Proposals for Guiding Investment of Tobacco Manufacturers in Establishing Exclusive High-Quality Leaf Tobacco Production and Supply Bases in Henan. This set of proposals provides that at least 80 percent of the leaf tobacco for producing cigarettes of key competitive brands in Henan Province over the next three years will be supplied by the exclusive high-quality leaf tobacco production and supply bases in Sanmenxia and Luoyang Cities. It also provides for norms governing the ways, methodology and standards of investment by tobacco manufacturers in establishing exclusive high-quality leaf tobacco production and supply bases in the province. Enditem