Issue link: https://read.dmtmag.com/i/550310
68 tobaccoasia China Tobacco Jiangxi Industrial Co., Ltd. (CTJI) – a 10-year old provincial-level Chinese tobacco company based in the southeast of China's Jiangxi Province – has kept a favorable trend of business development as a result of continued pursuit of new innovative models over recent years. The year 2013 was an extremely important period for CTJI. At the end of 2013, the new Ganzhou Cigarette Factory – a subsidiary of CTJI – went into operation after completing a 2.2-billion-yuan (US$355 million) project of re- location and technological transformation. With an estimated annual cigarette production capacity of 600,000 cases (30 billion cigarettes), the new cigarette factory is emerging as a leading tobacco manufacturing enterprise under CTJI. On November 20, 2013, a high profile cere- mony was held in Ji'an County of Jiangxi Province to lay a cornerstone for the construction of a new cigarette factory under CTJI – known as Mount Jinggangshan Cigarette Factory. After its con- struction, CTJI will have an extra 300,000 cases (15 billion cigarettes) added to its annual cigarette production capacity. In 2013, CTJI generated a record CNY10 bil- lion (US$1.61 billion) in annual taxes and profits. By Allen Liao China Tobacco Jianxi: Favorable Development In one year, the sales volume of cigarettes of Jin- sheng (The Gold Sage) brand – the flagship brand of CTJI – reached 400,000 cases (20 billion cig- arettes), with the sales volume to other Chinese regions hitting a record 100,000 cases (5 billion cigarettes). The aforesaid figures indicate that CTJI made a great deal of efforts for brands development, technological innovation, lean management, ciga- rette marketing, etc in 2013, scoring plenty of achievements therein. Taking advantage of the favorable develop- ment opportunities and trends, CTJI now wishes to further adjust and improve its development strategies in 2014, in order to take its develop- ment to a higher level in terms of marketing, management, and innovation. Shift of expansion strategy On the strategy for macro adjustment in 2014, general manager of CTJI Zheng Wei asked for a shift from a strategy for large-scale expansion to a strategy for structural improvement. A strategy for large-scale expansion is indeed capable of enlarging the capacity of enterprises and enlarging the group of consumers, and does The picture of China Tobacco Jiangxi Industrial Co., Ltd.