HongyunHonghe’s Venture Project in Indonesia Passes Assessment by Provincial Corporation

Source from:  HongyunHonghe Group  01/14/2013

HongyunHonghe Tobacco Group in southwest China’s tobacco-producing Yunnan Province – the largest Chinese tobacco manufacturer – has its Indonesia-based project of joint venture with Rock International Indonesia passed an assessment by a panel of inspectors sent by China Tobacco Yunnan Industrial Co., Ltd.

Along with continued strengthening of efforts by China’s tobacco industry to expand international marketing of cigarette products, joint-venture cooperation in processing overseas has become a major form of development of overseas markets.

In efforts to promote management of overseas operations by tobacco manufacturers of Yunnan to higher levels, China Tobacco Yunnan Industrial Co., Ltd. sent in December 2012 the panel of inspectors to conduct on-site inspection and assessment of a total of four cigarette-making venture projects funded by HongyunHonghe and Hongta Group overseas.

On December 18, the panel of inspectors arrived at Rock International Indonesia which is in cooperation with HongyunHonghe in operating the joint-venture project, to conduct full-scale and specific inspection and assessment of the results of the joint-venture project.

The panel of inspectors heard multilevel reports given by the general manager of Rock International Indonesia, executives in charge of the joint-venture project on behalf of the overseas business development department of HongyunHonghe and managers stationed in the joint-venture project by HongyunHonghe.

The panel of inspectors also conducted specific examination in terms of on-site production management, satisfaction of orders for products, procurement and use of raw and auxiliary materials for processing cigarettes using brands of HongyunHonghe, product quality control, etc.

On the basis of the on-site inspection and assessment, the panel of inspectors drew a conclusion that rapid development has been made in the project of joint venture between HongyunHonghe and Rock International Indonesia, that the measures of management are well in place, that remarkable achievements have been made, that the joint-venture project deserves the reputation as a highlight of overseas joint-venture operations by the tobacco industry of Yunnan, and that there exists relatively broad prospects for future development of the joint venture project.

Through cooperation in the joint-venture project over the past one year, the two sides have successfully operated the processing in Indonesia of three blend-type cigarette products and three flue-cured-type cigarette products using brands of HongyunHonghe to the tune of more than 70,000 boxes (700 million cigarettes).

The two sides have seen their confidence in bilateral cooperation keep enhancing, and have kept ironing out cultural and ideological differences between them, which has contributed to keeping enlarging the scale of bilateral cooperation, and enabling the joint-venture project to become the fourth major overseas processing base for HongyunHonghe in its endeavor to develop international markets. Enditem