Changsha Cigarette Factory to license production of Baisha in northwest China

Source from:  Baisha News 07/23/2007

Changsha Cigarette Factory - a key Chinese tobacco manufacturer based in south central China's Hunan Province that owns the famous cigarette brand of Baisha - will license Yan'an Cigarette Factory in northwest China's Shaanxi Province to produce Baisha brand cigarettes beginning in the second half of 2007. So far, Changsha Cigarette Factory has completed the process of assessment and technical transformation of Yan'an Cigarette Factory in preparation for the production of Baisha brand cigarettes locally, which is expected to start in August. In the first half of 2007, under efforts of Hunan Provincial China Tobacco Industry Corporation to coordinate and renew the license of production of Baisha brand cigarettes by tobacco manufacturers in other Chinese regions, managed to extend the scale of production of Baisha at four local cigarette making enterprises in Shaanxi Province and north China's Hebei Province. Besides, it succeeded in completing the trial run of newly installed cigarette-making machinery and realizing local production of cut tobacco for making Baisha brand cigarettes respectively in Lingling City of Hunan and Baoding City in Hebei. In the six-month period, Changsha Cigarette Factory well implemented the instruction of Hunan Provincial China Tobacco Industry Corporation to license tobacco manufacturers in other Chinese regions to produce Baisha brand cigarettes. So far, all joint-venture plans for producing Baisha brand cigarettes in an interregional way have been fulfilled by 100 percent and all Baisha brand cigarettes produced under license have been up to the standard. From January to June, the output of Baisha brand cigarettes produced under license reached 247,700 cases (12.385 billion cigarettes), a sharp increase of 51.13 percent over the same period of 2006. The large-scale increase in the output of Baisha brand cigarettes produced under license has contributed to alleviating the shortage of supply of Baisha brand cigarettes at the marketplace and increasing the market shares of Baisha. So far, Changsha Cigarette Factory's cooperation with other Chinese tobacco manufacturers in operating joint-venture programs has been in a favorable trend of development. Enditem