Waiting for China's tobacco control to get on-board

摘要

Longyan Cigarette Factory reflects the kind of good fortune and ambition which characterised China's tobacco industry in 2007. Located in the city of the same name in southeastern Fujian province, the factory's almost US$1 bn revenues for 2007 are a 24.5% increase on figures for the previous year. The state-owned factory, overseen by the State Tobacco Monopoly Administration (STMA), is predicting the figure to rise to US$ 1.1 bn in 2008. Longyan's good fortunes are reflective of a wave of consolidation and modernisation sweeping China's cigarette industry. Longyan is spending US$135mn on a new plant for its Jingpin (Superior) Septwolves brand, bringing annual capacity to 20bn sticks. The 86,820m~2 factory wifl be ready in late 2009. The investment is part of an STMA push towards so-called "key competitive brands" - fewer, larger tobacco companies capable of competing internationally. The STMA last year announced that 1,574 county-level tobacco companies across China have in this decade been amalgamated with larger corporations.