Tobacco Asia

44 tobaccoasia MANUFACTURING NEWS 制造新闻 USSTC Moves Production to Kentucky US Smokeless Tobacco Company (USSTC), a subsidiary of Altria Group, plans to consolidate parts of its manufacturing operations as part of a broader effort to modernize production and improve efficiency. The company will relocate manufacturing activities from its Nashville, TN, facility to a new production site that it will build on its existing campus in Hopkinsville, KY. USSTC expects the transition to unfold gradually, with Nashville operations scheduled to end in early 2028. The phased timeline aims to maintain business continuity while supporting employ- ees throughout the process. USSTC president and c.e.o. Michael Brace said, "Modern- izing our manufacturing capabilities is essential to position USSTC for long-term success in an evolving market. By streamlining operations and concentrating production at a purpose-built facility, we can improve efficiency, enhance resilience, and better support the future needs of our business." Nashville employees will be encouraged to apply for available positions in Hopkinsville and Richmond, VA. Those not pursuing relocation will have access to generous severance packages that can include outplacement services and additional transition support. The Nashville facility primarily is used as a finishing and packaging operation for leading brands Copenhagen, Skoal, Red Seal, and Husky. Rather than splitting processes between Nashville and Hopkinsville, this move allows nearly all processing, production and finishing to be completed in Hopkinsville. Additionally, transitioning production capacity from Nashville's 800,000-square-foot legacy plant to a modern, 270,000-square-foot Hopkinsville facility will eliminate fixed cost inefficiencies and generate operational savings. The company intends to sell its over 30-acre campus in the heart of downtown Nashville. According to state officials, USSTC will invest approxi- mately US$251 million in the expansion and add 200 jobs once the site becomes operational. JTI Expands Tenerife Production Hub Japan Tobacco International (JTI) plans to invest €20 million (US$22.8 million) in its Tenerife factory over the next two years, building on more than €100 million (US$114 million) that the company has invested in the facility during the past decade. The Santa Cruz de Tenerife plant is one of the Canary Islands' main industrial and export drivers, as well as being Spain's biggest cigarette manufacturing facility. JTI says the site plays a key role in its European production network and exports products to more than 20 countries. "We are going to invest €20 million in the next two years to continue strengthening the plant's capacity, but also to attract new projects," said Alejandra Cobera, JTI Iberia's regulatory & fiscal affairs lead. Cobera noted that JTI has already invested €46 million (US$52.4 million) during the past three years in a high-speed production line. She added that production volumes increased in 2024 after JTI transferred 35% of the output previously manufactured in Germany and Poland to Tenerife. The facility produces roughly 70% of all cigarettes manufactured in Spain and about 60% of the country's combustible tobacco products. Around 70% of the factory's output goes to export markets, including the United Kingdom, Italy, Greece, Lithuania, and Portugal. The site also manufac- tures more than 96% of JTI's cigarillos. JTI has created more than 100 jobs at the factory over the past three years, bringing total employment to nearly 330 workers. The Tenerife operation traces its roots to 1958, when local tobacco entrepreneurs established the Centro Industrial de Tabaqueros Asociados (CITA). JTI acquired the business in 2007 and later integrated the facility into its global supply network. The company has since expanded production and upgraded the plant to support international brands including Winston and Camel. JTI has also invested in sustainability initiatives at the site. Solar panels now generate about 25% of the factory's energy needs, supporting the company's broader environmental goals. India: Godfrey Phillips Strikes Long-Term Production Deal with Polisetty Somasundaram Godfrey Phillips India Ltd. entered into a nine-year contract manufacturing agreement with Polisetty Somasundaram Tobacco Products (India) Pvt. Ltd. to expand production capacity and support the continued supply of its products in the domestic market. Under the agreement, Polisetty will manufacture cigarettes and other tobacco products exclusively for Godfrey Phillips at its facility. The company will produce the products according to specifications and quality standards set by Godfrey Phillips, which will also supply the materials required for manufacturing. In return, Polisetty will receive a manufac- turing fee comprising fixed and variable components. The agreement requires Polisetty to make its best efforts to establish the manufacturing facility and secure the necessary licenses to start operations within 12 months. Godfrey Phillips may also provide machinery and equipment to support production activities at the site. The contract carries an initial term of nine years and includes customary contractual provisions such as warranties and indemnities. Godfrey Phillips stated that the transaction does not qualify as a related-party deal and that neither its promoters nor promoter-group entities hold an interest in the counterparty. According to the latest audited financial statements available for the year ended March 31, 2025, Polisetty Soma- sundaram Tobacco Products reported revenue from operations of INR18.6 million (US$217,000) and profit after tax of INR16.4 million (US$191,000). Zimbabwe: CRP Targets Higher Processing Volumes Cut Rag Processing (CRP) says its tobacco processing plant in Harare has met performance targets since commencing operations following its commissioning in November last year.

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