China, DPRK set up Tobacco Joint Venture in Pyongyang

Source from:  Xinhuanet.org 04/28/2008

With 4 million euros (6.36 million U.S. dollars) of investment, a tobacco joint venture by China and the Democratic People's Republic of Korea (DPRK) -- Pyongyang Paeksan Tobacco Ltd. -- was set up in Pyongyang on April 23, with Chinese and DPRK sources both calling it yet another new fruit of the increasing China-DPRK economic exchange and cooperation. In an address to the ceremony marking the establishment of the joint venture, Cho Chong Ung, the DPRK's Vice Minister of Light Industry and president of the DPRK Tobacco Association, said that the establishment of Pyongyang Paeksan Tobacco Ltd. was a crystallization of the increasing economic exchange and cooperation between the DPRK and China, and that the products of the joint venture would be intended to meet demand of consumers in the DPRK. Proceeding from the principle of mutual benefit and reciprocity, the DPRK will continue developing economic exchange and cooperation with China, Cho said. Chinese Ambassador to the DPRK, Liu Xiaoming, said the Chinese government would continue to actively support Chinese enterprises to "go abroad" in developing mutually beneficial cooperation with DPRK enterprises to reach a win-win situation. Liu said that efforts would be made to create more opportunities and better conditions for the development of mutually beneficial cooperation between Chinese and DPRK enterprises. Situated in Ryongsong-guyok of Pyongyang City, Pyongyang Paeksan Tobacco Ltd. has a total investment of 4 million euros (6.36 million U.S. dollars) – 2.04 million euros (3.24 million U.S. dollars) extended by China's Jilin Provincial Tobacco Co., Ltd. with cigarette production equipment and supporting equipment, and 1.96 million euros (3.12 million U.S. dollars) offered by the DPRK side with land, workshop buildings and supporting facilities. Pyongyang Paeksan Tobacco Ltd. is expected to have an annual cigarette production capacity of 500,000 cases (25 billion cigarettes), with its main products being cigarettes of Pyongyang brand, Paeksan brand, etc. The products will be mainly sold in the DPRK. The duration of the joint venture will be 10 years. Economic cooperation between China and the DPRK has been in a trend of favorable development over recent years. By January 2008, the Chinese government had approved 84 projects of investment in the DPRK, with the total contractual value amounting to 440 million U.S. dollars, including 260 million U.S. dollars extended by Chinese investors in contractual value. Enditem