City Tobacco Company, Hongyun-Honghe Reach Agreement on Establishment of Raw Materials Supply Bases

Source from:  TobaccoChina Online 06/24/2009

Qujing City Tobacco Company and the Hongyun-Honghe Tobacco Group - both in southwest China's tobacco-producing Yunnan Province - reached an agreement in principle on joint establishment of raw materials supply bases on June 18, following sufficient negotiations between the two sides on matters concerning the establishment of raw materials supply bases for the production of cigarettes of big competitive brands. Attending the negotiations were leaders of the Production Technology Department, the Technical Center, the Leaf Tobacco Trading Department and the Financial Affairs Department of Qujing City Tobacco Company, Presidential Assistant Wang Shaokun and other officials of the Hongyun-Honghe Tobacco Group, and leaders of Qujing City Science and Technology Bureau. At the negotiations, the two sides, proceeding from the general requirement for "improving the quality of leaf tobacco as raw materials, highlighting the characteristics of raw materials and strengthening the capacity of supplying raw materials", and in light of the realities of leaf tobacco production, purchase and allocation by the State in Qujing City and the change of development strategies by the Hongyun-Honghe Tobacco Group, put forward opinions on revision of a previous agreement on cooperation in meeting new demand for the supply of raw materials with local characteristics, and on improvement of measures for exclusive supply of products, regional optimization, etc in their plans for joint establishment of raw materials supply bases. For years, the Hongyun-Honghe Tobacco Group has been a major supplier of leaf tobacco for Qujing City Tobacco Company. It has also been an important cooperation partner to the ESTB project of Qujing City Tobacco Company. In their cooperation in 2009, the two sides are expected to see their coordinated development of bilateral industrial and commercial relations become closer, and their cooperation in the joint establishment of raw materials supply bases for the production of cigarettes of big competitive brands become more characteristic. Enditem