China's No. 1 Cigar Making Base to be Built in Southwest China

Source from:  Tobacco online china 02/25/2009

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 been designated by the State Tobacco Monopoly Administration (STMA) to build China's No. 1 cigar making base in Sichuan Province. At an annual work conference held on February 20, Sichuan-Chongqing Regional China Tobacco Industry Corporation announced that it has started cooperation with mature foreign enterprises in the field of cigar production on a full scale. According to the meeting, Sichuan-Chongqing Regional China Tobacco Industry Corporation is planning to sell 800 million cigars in 2009. A top leader of Sichuan-Chongqing Regional China Tobacco Industry Corporation has said that the corporation sold 360 million cigars in 2008, and that it ranks the first in China in terms of both the annual output and sales volume of cigars. Since it is planning to sell 800 million cigars in 2009, the corporation has set the target of annual cigar sales income for this year at 200 million yuan (29 million U.S. dollars). Presently, Sichuan-Chongqing Regional China Tobacco Industry Corporation is stepping up efforts to transform its Great Wall Cigar Factory into an enterprise adopting the corporate system. In accordance with an agreement of intent on cooperation with Hongta Group in southwest China's tobacco-producing Yunnan Province, Sichuan-Chongqing Regional China Tobacco Industry Corporation will strive to establish as early as possible the Great Wall Cigar Co., Ltd., in which Sichuan-Chongqing Regional China Tobacco Industry Corporation will take a controlling stake and Hongta Group - the largest Chinese tobacco manufacturer - will acquire shares. Through cooperation in this form, the two large tobacco manufacturing enterprises will be able to give play to their respective advantages in terms of funding, competitive brands and marketing, which are mutually complementary. Besides, they will also manage to select an appropriate number of cigar distributors in the 36 key cities designated by the STMA, and establish exclusive cigar distribution and allocation networks there. Enditem