|
JTI invests US$ 45mn in tobacco plant |
|
SENTA -- Japan Tobacco International (JTI) has invested US$ 45mn ito Senta-based tobacco plant.
The plant is expected to become operational by April 25.
JTI Senta Director Tamer Tetsirlioglu said the construction of a new production hall and the installment of production apparatus were completed, with new storage houses left to be finished by the end of 2007.
He said that ever since JTI took over Senta tobacco plant, it took up 50 employees previously trained in Russia and Romania, adding the company had plans to employ and train additional 30 workers.
Japan Tobacco International (JTI) purchased 98.45 percent of Senta Tobacco Industry’s shares for EUR 27.5mn.
JTI Senta annual production capacity stands at five billion cigarettes, which equals 5,000 tones. However, the company plans to increase the amount to 1,500 tones of cigarettes per annum. 6 April 2007 | 11:13 | Source: Beta |
|
|
Philip Morris May Raise Cigarette Price |
|
Philip Morris USA Could Raise Cigarette Prices Before Christmas,
Citigroup Analyst Says
NEW YORK (AP) -- Philip Morris USA may announce a price increase of 10 cents per pack, leading other cigarette makers to follow suit, Citigroup Analyst Bonnie Herzog wrote in a research note Thursday.
She predicted the domestic unit of New York-based Altria Group Inc. could announce the price increase as early as Friday, with the higher prices to go into effect before Christmas. She based her prediction on the fact that Philip Morris and Lorillard recently cut wholesale orders to reduce the amount of inventory wholesalers can buy, a move she called "typical right ahead of a price increase."
"We believe the industry still has some pricing power and it makes sense for the manufacturers to take pricing since all of the tobacco companies are facing higher Master Settlement Agreement payments during 2007," Herzog wrote. "Furthermore, we believe the manufacturers are more comfortable taking pricing soon given that state excise taxes did not increase substantially in 2006."
Herzog noted that Philip Morris USA held a two-day meeting with sales representatives that ended Thursday.
Citigroup has a "Buy" rating on Altria.
The analyst also said Altria may soon introduce a new brand that extends either the Marlboro or Parliament lines.
Altria shares lost 12 cents to close at $84.21 on the New York Stock Exchange. 30 November 2006 |
|
|
