Tobacco Asia

40 tobaccoasia MANUFACTURING NEWS 制造新闻 MM to sell TANN Group Mayr-Melnhof Karton AG (MM) has agreed with Evergreen Hill Enterprise, Pte. Ltd., part of an Indonesian-based privately held group of diversified companies, on the sale of 100 % of the shares in TANN Group, headquartered in Traun, Austria, for a cash and debt-free enterprise value of €360 million. TANN Group prints on and finishes externally sourced fine paper to produce tipping paper. As the business is unrelated to cartonboard and consumer packaging, MM decided to sell it. TANN Group generates annual sales of approximately €220 million. TANN comprises seven produc- tion sites in Austria, China, the Philippines, Turkey, Canada, and Germany and a global workforce of around 730 employ- ees, who will join Evergreen Hill Enterprise. "The sale offers MM the opportunity to further strength- en and expand the position in its core consumer packaging business," comments Peter Oswald, c.e.o. of MM. "We are delighted that TANN Group gets a new strategic owner with Evergreen Hill Enterprise, which is committed to investing in its future. Above all, we would like to thank the entire staff for their great work over the past years with MM." The transaction, which is subject to usual completion conditions and regulatory approvals, is expected to be closed in the first quarter of 2025. BAT Bangladesh Invests US$2.4 Million to Boost Capacity British American Tobacco Bangladesh (BATBC) has an- nounced an investment of BDT283.8 million (US$2.4 million) to increase its production capacity, aiming to meet the growing demand for cigarettes. The investment will be financed through a combination of internal funds and bank loans, drawing from the company's cash flow. The funds will be used to purchase machinery, spare parts, and necessary equipment, including conversion knit and inspection systems. Following the announcement, BATBC's stock rose by 1.03%, reaching BDT354.1 (US$3.02) per share on the Dhaka Stock Exchange (DSE). However, BATBC did not disclose specifics regarding the expected increase in production capacity or its potential impact on revenue and profits. BATBC operates several facilities in Bangladesh, including factories in Dhaka and Savar, a green leaf threshing plant in Kushtia, and a green leaf re-drying plant in Manikganj. Despite inflation and price hikes, BATBC has experienced steady growth in domestic sales, with market analysts noting that consumer purchasing habits have remained resilient. Additionally, there is substantial potential for cigarette and tobacco leaf exports, further contributing to the company's expansion. In response to rising demand, BATBC has consis- tently expanded its production capacity, having invested over BDT12 billion (US$102 million) in the past four years. The company markets popular brands such as Benson & Hedges, John Player Gold Leaf, and Lucky Strike, among others. BATBC reported a 9.6% year-on-year increase in net sales, which reached BDT20.51 billion (US$175 million) for the July-September quarter, primarily driven by stronger domestic sales. However, the company's profit for the quarter declined by 2.2% to BDT3.97 billion (US$33.8 million). For the first nine months of the year, BATBC's net sales increased by 2.12% to BDT69.4 billion (US$589 million), while profits fell by 2.5% to BDT13.22 billion (US$112 million) compared to the same period in 2023. The company posted an annual profit of BDT17.88 billion (US$152 million) for 2023, nearly unchanged from the previous year, and declared a 100% cash dividend for its shareholders, the lowest payout in a decade. 22nd Century Boosts Manufacturing with Smoker Friendly Deal 22nd Century Group, Inc. completed a new licensing and manufacturing agreement with Smoker Friendly, one of the largest independent cigarette retailers in the US. The agreement covers 11 existing SF brands sold across Smoker Friendly's retail network and dealers in the US, as well as eight new premium SF brands that will launch. The deal also sets the foundation for future product expansions. The new five-year agreement strengthens a decade-long business relationship and solidifies 22nd Century's connection with Smoker Friendly, while also creating new opportunities for growth. The 11 existing SF brands will generate significant contract manufacturing volume for 22nd Century's MSA-com- pliant facility in North Carolina. The eight new premium products focus on the natural segment, expanding Smoker Friendly's market reach and increasing volumes with 22nd Century. These brands are expected to target the premium market, offering a higher-end alternative to lower-tier products. The company plans to expand the master services agreement by incorporating Smoker Friendly's existing filtered cigar business and adding a reduced nicotine content brand that complements 22nd Century's VLN product line. This addition will not only broaden Smoker Friendly's product offerings but also provide customers with more choices for controlling their nicotine intake through VLN® reduced nicotine-branded products. Cherokee Tobacco's New NC Facility Cherokee Tobacco Company, a Virginia-based manufacturer of cigarettes, cigars, and pipe tobacco, will receive a state incentive package to support its move to a new US$14 million facility in Caswell County, NC. The company plans to consolidate its operations into a 65,000-square-foot plant in Pelham, approxi- mately 40 miles north of Greensboro and near the state border. The expansion is expected to create 39 new jobs, with an average annual salary of US$65,154—well above the county's average of US$43,046, as reported by the state Department of Commerce and Governor Roy Cooper. Cherokee is a family-owned business and has been producing its own cigarettes, cigars, and pipe products for over 20 years. As a sister company to JEB International, which operates globally in tobacco processing, Cherokee is expanding

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