Projects Kicked off for Rebuilding Tobacco Manufacturing Enterprises in Quake-Stricken Areas

Source from:  Sichuan Daily newspaper 07/16/2008

Sichuan-Chongqing Regional China Tobacco Industry Corporation -- the operator of the tobacco industries in southwest China's Sichuan Province and its neighboring Chongqing City - has kicked off the projects of technical transformation for rebuilding two tobacco manufacturing enterprises in areas hit hard by a devastating earthquake on May 12, 2008. On July 12, Sichuan-Chongqing Regional China Tobacco Industry Corporation held a ceremony to start the relocation and reconstruction of its two subsidiaries - the Great Wall Cigar Factory in Shifang City and Mianyang Branch Cigarette Factory in Mianyang City, both located in areas of Sichuan Province hit hard by the magnitute-8 earthquake that has killed at least 69,197 people. Laying the cornerstones for the reconstruction of the two tobacco manufacturing enterprises respectively at new sites were Sichuan Provincial Communist Party Committee Secretary Liu Qibao and Deputy Director-General Li Keming of the State Tobacco Monopoly Administration (STMA) among other senior officials. Sichuan-Chongqing Regional China Tobacco Industry Corporation has said that though the powerful earthquake seriously damaged its production facilities, its rate of growth and determination to development have never been negatively impacted. In a period of mere more than one month after the earthquake, Sichuan-Chongqing Regional China Tobacco Industry Corporation managed to make up for the shortfall of more than 4.5 billion cigarettes (90,000 cases) in cigarette output caused by the earthquake, and instead produced an extra 600 million cigarettes (12,000 cases) in excess of the planned target. Official statistics indicate that in the first half of 2008, Sichuan-Chongqing Regional China Tobacco Industry Corporation generated 6.17 billion yuan (880 million U.S. dollars) in taxes and profits, up 20.6 percent year-on-year, including 3.9 billion yuan (557 million U.S. dollars) generated by the Sichuan part of the regional tobacco industry alone, up 21.4 percent year-on-year. Therefore, the annual production quotas for Sichuan-Chongqing Regional China Tobacco Industry Corporation in 2008 will remain unchanged despite the serious natural disaster. According to sources with the tobacco industry, Sichuan-Chongqing Regional China Tobacco Industry Corporation is expected to generate a total of 13.6 billion yuan (1.94 billion U.S. dollars) in taxes and profits in the whole of 2008, with the annual growth rate expected to reach a record high of 42 percent. In particular, the growth rate realized by the Sichuan part of the regional tobacco industry is expected to reach a high of over 50 percent year-on-year. After the earthquake, Sichuan-Chongqing Regional China Tobacco Industry Corporation adopted a decision to invest nearly 3 billion yuan (428 million U.S. dollars) in projects of technical transformation for rebuilding three of its subsidiaries, which also include a manufacturing enterprise in Xigong City, besides the ones in Shifang and Mianyang Cities. The relocation and reconstruction of the Great Wall Cigar Factory in Shifang City will take an investment of 800 million yuan (114 million U.S. dollars). When reconstructed, the Great Wall Cigar Factory will have an annual cigar production capacity of 2 billion cigars by 2013, including 11.3 million high-grade cigars and 700 million medium-grade cigars. It is expected to earn 1.3 billion yuan (186 million U.S. dollars) in annual sales income, including 900 million yuan (128 million U.S. dollars) in annual taxes and profits. For Mianyang Branch Cigarette Factory, it will take an investment of 935 million yuan (133 million U.S. dollars) for relocation and reconstruction. When reconstructed, it will have an annual cigarette production capacity of 15 billion cigarettes (300,000 cases), and is expected to generate 1.6 billion yuan (228 million U.S. dollars) in annual taxes and profits. Besides, reconstruction of the Xichang-based enterprise has also been started. Enditem