Shanghai Tobacco Group Starts Technical Transformation of Production Lines

Source from:  sh-tobacco.com.cn 10/08/2007

Shanghai Tobacco Group - one of the largest Chinese tobacco manufacturers designated by the State Tobacco Monopoly Administration (STMA) - has recently started the project of large-scale technical transformation of the production lines of its famous Chunghwa brand cigarettes, to significantly enlarge their production capacity. On September 19, Shanghai Tobacco Group held a meeting on open invitation of tenders for designing the general plan for the large-scale technical transformation of the production line of Chunghwa, signifying the official start of the technical transformation project. On September 14, the STMA - the regulator of China's tobacco industry - approved an official document to approve the project of large-scale technical transformation of the production lines of Chunghwa, which have been in operation at Shanghai Cigarette Factory - the manufacturing arm of Shanghai Tobacco Group. The technical transformation project has been the largest of its kind for Shanghai Tobacco Group in its history so far. It has therefore aroused extensive attention from other big players with the tobacco industries both in China and broad. Shanghai Tobacco Group has set up a special office to particularly take charge of the work of technical transformation. When technically transformed, the production lines of Chunghwa will be capable of producing cut tobacco for making 50 billion cigarettes (1 million cases) and also producing 30 billion cigarettes (600,000 cases) annually, and have enough for future upgrade. According to Shanghai Tobacco Group, the technical transformation project is aimed at substantively improving the production lines of Chunghwa and enabling them to produce cigarettes with unique characteristics of the Chunghwa brand; further improving the quality of Chunghwa brand cigarettes, accelerating the application of new and high technologies in production; and further enlarging the production capacity of Chunghuwa, significantly increasing its competitiveness and turning it into a superior Chinese cigarette brand. In the official document on approval of the technical transformation project, the STMA requires Shanghai Tobacco Group to further strengthen the analysis of marketing, technological development and application and the input-output ratio, manage to prevent investment risks, and increase the effect of investment. It also urges Shanghai Tobacco Group to well plan the use of existing land in the vicinity of Shanghai Cigarette Factory in the process of technical transformation; rationally install facilities for production, storage, logistic supply and support; attach importance to giving full play to the functions and advanced applicability of newly introduced technologies and equipment; realize a scientific transition from the existing factory site to the new site; and strive to build the new factory site into one with a complete range of production equipment and technologies, with a convenient and rapid-response logistical supply system, and with the necessary conditions for readjustment and further development. In line with the policy of "planning at a level, designing with high standards, construction with high quality, operation with a high efficiency and management at a high level", efforts should be made to technically transform the production lines of Chunghwa into representative production lines for producing high-quality Chinese-style cigarettes that will reach advanced world levels, with the relevant intellectual property rights exclusively owned by the tobacco industry of China, according to the official document of the STMA. Enditem