<strong>China: HongyunHonghe Holds 2013 Production Safety, Quality Control Conference</strong>

HongyunHonghe Tobacco Group in southwest China's tobacco-producing Yunnan Province – the largest Chinese tobacco manufacturer – held on March 11 the 2013 working conference on production safety and quality control, in efforts to meet its targets for production and marketing for the 2011-2015 five-year period.

The year 2013 is the decisive middle part of the 2011-2015 five-year period, is a new start point for the establishment of the Yunyan cigarette brand, and is also crucial year for the endeavor of HongyunHonghe to crack hard-nut problems in seeking greater development.

Therefore, HongyunHonghe has set a package of major development targets for 2013 – to ensure that the production and operation plans will be met by 100 percent; to ensure that the up-to-standard rate in product quality regular inspection, sample survey and commercial inspection will reach 100 percent; to ensure that the enterprise' rate of promotion of benchmarking indicators will reach 60 percent; to ensure that the good factory target rate will reach 100 percent; to fulfill the targets for material consumption, energy consumption and major pollutants emission issued by the tobacco industry and the local government; to strive to fulfill the internal control targets set by itself; to ensure that the comprehensive efficiency of intermediate speed cigarette making, joining and packing equipment will not be below 86 percent and high-speed equipment will not be below 80 percent; and to realize accident-free in production safety control in six aspects in the whole year.

In accordance with the aforesaid targets, HongyunHonghe has determined a package of key points of the work of quality control in production safety in the year 2013 – to improve production, to stabilize quality, to give priority to management, to ensure production safety, to strengthen equipment and to promote environment protection and energy conservation.

In a concluding speech delivered at the meeting, HongyunHonghe Board of Directors Chairman Yao Qingyan stressed issues in the aspects of targets and confidence, quality and grading, formulation of effective measures and strengthening of implementation; analyzed the current harsh situation of competition faced by the tobacco industry, the favorable trend of development and the robust development potential of the Yunyan cigarette brand family; and further made it clear that HongyunHonghe and its production factories need to specify their development targets, make their confidence firmer, strive to improve quality and strengthen implementation. Enditem