PMFTC To Pursue Expansion Plans

Source from:  Manila Bulletin 06/25/2012

MANILA, Philippines --- Despite a threat of higher taxes, cigarette-maker PMFTC Incorporated is looking for other locations within the Philippines where it can invest in tobacco growing. Chris Nelson, PMFTC president said that the company is looking for locations where they can continuously grow tobacco in a period of 12 months and are not prone to typhoons. "We're trying to improve the quality our product, we're actually trying to see if we can grow tobacco on a continuous basis and we're trying to look at different areas which are less affected by the weather," Nelson told reporters. He said that at present, farmers can only plant tobacco from September to October and it will be ready for harvest in March next year. But Nelson also said that area's soil condition is still a primary consideration before PMFTC will invest. Tobacco usually grows in the Locos region, however, Nelson said province is frequently hit by typhoons that results to small production output. Last year, total market for tobacco reached 79 million kilos. "The idea is to find places where we can have continuous production, and if that proves successful, we'll expand our business because also of course we need to get from the farmers," Nelson explained. He said PMFTC is looking at Bohol as another possible location for tobacco growing while there is an ongoing testing happening in the provinces of Cagayan de Oro and Mindoro. PMFTC accounts for at least 90 percent of the Philippine tobacco industry after Philip Morris combined with Fortune Tobacco. Its brands include Marlboro and Philip Morris, Fortune, Champion and Boss cigarettes. At present, some 2.7 million of the country's population derive employment from the tobacco industry. The industry, however, is under pressure from tax authorities, who have been pushing a bill in Congress to raise excise tax rates. Despite the threat, Nelson said PMFTC will continue to do business in the Philippines. "We wouldn't move out of the country, as I've said we've been here since 1955. I think that we've seen a lot of changes since 1955, and we're committed to be here of course," Nelson said. But he also warned that the proposed measure will send a "very bad signal" on the company's future investments in the Philippines. Enditem