<strong>China: Provincial Corporation Completes Annual Public Bidding for Cigarette Materials</strong>

Source from:  TobaccoChina Online 01/17/2014

China Tobacco Yunnan Industrial Co., Ltd. in southwest China's tobacco-producing Yunnan Province has recently completed the annual public bidding for the supply of cigarette materials for cigarette production by tobacco manufacturing enterprises affiliated to it in the 2014-2015 period.

In the process of public bidding, Hongta Tobacco Group and HongyunHonghe Tobacco Group affiliated to China Tobacco Yunnan Industrial Co., Ltd. both formulated detailed plans in accordance with the Guiding Opinions of China Tobacco Yunnan Industrial Co., Ltd. on the Work of Public Bidding for Procurement of Cigarette Materials in the 2014-2015 Period and in light of their own realities, and organized the execution of all processes of public bidding strictly in compliance with the relevant procedures.

The public bidding this time showed the following four major characteristics:

Firstly, the scope and coverage of public bidding were both further enlarged. The cigarette materials covered by the public bidding this time included cigarette paper, inner liner, tearing tapes, tipping paper, cigarette film, framework paper, cigarette carton and packet packaging paper, facing slips, cigarette cardboard, plug paper, plasticizers, cigarette glues, etc, with the general coverage rate reaching a high of 93.7 percent.

Secondly, the quantity and value of cigarette materials covered by the public bidding this time further increased, with the value of cigarette materials covered by the public bidding accounting for 99.2 percent of the value of the expected amount of procurement.

Thirdly, the cost of procurement is expected to obviously decline.

And fourthly, the number of suppliers was brought under effective control. The process of public bidding embodied the principles of openness, transparency, fair competition, impartiality and good faith, and survival of the fittest suppliers. As a result, the number of suppliers was brought under effective control. Enditem