Tobacco Asia

Volume 19, Number 5

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tobaccoasia 41 REMAIN SUCCESSFUL in a changing market environment www.hoffmann.ch Major tobacco products of CTCI include Tianzi and Pride cigarette brands and Great Wall and Lion cigar brands. Official data indicate that in 2014, the com- pany produced 157.95 billion cigarettes (3.159 million cases), with its subsidiary in Sichuan pro- ducing 100.35 billion cigarettes, and the subsidiary in Chongqing producing 57.6 billion cigarettes. In one year, CTCI produced 46.24 billion cigarettes in joint-venture operations, accounting for 29.3% of its total cigarette output. After the latest round of integration of the existing cigarette brands, the annual cigarette output of its leading brand, Pride, reached a high of 80.35 billion cigarettes in 2014, accounting for 50.9% of the annual cigarette out- put of the company that year. On October 12, 2015, STMA deputy director- general Zhao Hongshun announced a decision to deeply reform CTCI, which entails the separation of the company into two independent entities – China Tobacco Sichuan Industrial Co., Ltd. and China Tobacco Chongqing Industrial Co., Ltd. Both new entities will be subsidiaries wholly owned by CNTC. By then, CTCI had already started the process, 12 years after its incorporation. No matter whether it comes to reorganization or separation, the development of CTCI has been closely linked to the general reform of state-run enterprises in China, increase of the distribution efficiency of tobacco industry resources, and the conception and requirement of market-oriented reform in the country. Just like what Zhao said, CTCI was incorporated at a time when the re- gional economies of Sichuan and Chongqing were undergoing reform leading to integrated develop- ment, when the tobacco industry was undergoing separation of its manufacturing sector from the commercial sector, and when the regional tobac- co industries of the two provinces were actively exploring ways to restructure and integrate their resources. The building of Chuanyu Industrial Corporation

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