Tobacco Asia

Volume 19, Number 5

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40 tobaccoasia / Issue 5, 2015December/January) By Tobaccochina Online Amid a slowdown in the development of Chi- nese economy, the tobacco industry is stepping up structural reform in line with central govern- ment planning, with both separations and mergers of existing tobacco manufacturing enterprises to sharpen its competitive edge. On August 24, 2015, the Central Committee of the Communist Party of China and the State Council (the Cabinet) jointly issued the Guiding Opinions on Deepening Reform of State-Run En- terprises (hereinafter referred to as "the Guiding Opinions"), as a program document for guiding and promoting the reform process of state-run en- terprises in China during the current period. Since the Guiding Opinions have been issued, both industrial administrative authorities and all sectors from the central government to local au- thorities have launched efforts to study and imple- ment it in earnest. As far as the tobacco industry is concerned, the State Tobacco Monopoly Admin- istration (STMA) – the regulator of the tobacco in- dustry – and China National Tobacco Corporation (CNTC) have launched an exclusive study of the Guiding Opinions, in order to contribute to fur- ther deepening of structural reform of the tobacco industry and promote its development. Within this context, tobacco manufacturers enterprises have seriously quickened their pace of structural reforms. First, China Tobacco Chuanyu Industrial Co., Ltd. (CTCI) – the operator of the tobacco busi- ness of Sichuan Province (Chuan) and neighbor- ing Chongqing City (Yu) announced a plan to separate itself into two independent entities. Shortly afterwards, China Tobacco Yunnan In- dustrial Co., Ltd. (CTYI ) – the operator of the to- bacco manufacturing sector in Yunnan Province, known as China's kingdom of tobacco – complet- ed the process of merging its assets dedicated to non-tobacco trade in business diversification. The separation and the merger have demon- strated the determination and efforts of the tobac- co industry to step up and promote its structural reform in an in-depth way. Separation of CTCI Incorporated in August 2003, CTCI is the first large-size interprovincial tobacco group of the na- tion. It is also the No. 1 corporate taxpayer in Si- chuan and Chongqing. CTCI has 2 wholly-owned subsidiaries under it, in Sichuan and Chongqing respectively; 7 cigarette factories in Chengdu, Shifang, Mianyang, Xichang, Chongqing, Fuling, and Qianjiang; and 1 cigar factory in Shifang. CTCI has a total workforce of more than 8,000. Annually, the company produces and sells more than 150 billion cigarettes (3 million cases), and has an annual cigar making capacity of 5 billion. China's Tobacco Industry Steps Up Structural Reform The technology r&d center of China Tobacco Chuanyu Industrial Corporation

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