Hongta's Subsidiary in South China Undergoes Relocation

Source from:  TobaccoChina Online 12/18/2009

Hainan Hongta Co., Ltd. - Hongta's Group's subsidiary in south China's Hainan Province - will be relocated to a new site at the Yunlong Industrial Park in Qiongshan District in the provincial capital city of Haikou, in a project of technical transformation and relocation with a total investment of 1.13 billion yuan (162 million U.S. dollars). On December 26, a grant ceremony will be held at the industrial park to lay the cornerstone for the project. In an interview with Chinese news media on December 13, General Manager Zheng Zhongwen of Hainan Hongta Co., Ltd. said that the project of technical transformation and relocation of Hainan Hongta Co., Ltd. is a priority project of Haikou City, and that the construction work at the new site will be fulfilled in three years. When the project of technical transformation and relocation is fully completed, the new Hainan Hongta Co., Ltd. will have an annual cigarette production capacity of 15 billion cigarettes (300,000 cases). In 2012 - the first year after it goes into operation, the new Hainan Hongta Co., Ltd. will produce 10 billion cigarettes (200,000 cases), to generate 1.07 billion yuan (153 million U.S. dollars) in taxes and profits. Then, the annual cigarette production capacity of the enterprise will increase year-on-year to a total of 15 billion cigarettes (300,000 cases). The project of technical transformation and relocation of Hainan Hongta Co., Ltd. has also been listed as a provincial-level priority project. As the only cigarette making enterprise in Hainan Province, Hainan Hongta Co., Ltd. was incorporated on the basis of renaming and full-scale systemic conversion of the former Hainan Cigarette Factory in 2002. Since its incorporation, Hainan Hongta Co., Ltd., by means of the advantages of Hongta Group in competitive brands, technology and raw materials, has taken steps to conduct reform in an in-depth way, strengthen management, intensify efforts to realize technical innovation, accelerate reform of the structure of cigarette brands, and significantly enlarge its capacity, achieving relatively rapid development in all aspects. Over recent years, Hainan Hongta Co., Ltd. has seen its profit making increase by 10 percent or higher year-on-year. From 2002 to October 2009, Hainan Hongta Co., Ltd. has paid a total of 2.57 billion yuan (368 million U.S. dollars) in taxes to the State. Enditem