Malawi Factory Sold as Alliance Seeks Cost Savings

Source from:  tr.itsmyiq.com Apr 1, 2008 04/02/2008

Alliance One International has sold one of its Malawi factories. The company announced yesterday that its wholly-owned subsidiary, Alliance One Tobacco (Malawi) Ltd (AOI Malawi) had completed the sale of its Lilongwe North Factory, including a threshing line and other related assets, to Africaleaf Processors Ltd for about $14.8 million, of which $9.5 million would be recorded as a gain on the sale of assets. At the same time, the company said that AOI Malawi had made an 'additional investment' to enhance the capacity of its Lilongwe South Factory, reflecting its continued commitment to and confidence in the Malawi tobacco industry. "The sale of the Malawi assets is consistent with the company's continued strategic focus of identifying and pursuing cost savings and further right-sizing our strategic global footprint," said CEO, Pete Harrison. Enditem