Tobacco Asia

Volume 19, Number 2

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Page 44 of 79

tobaccoasia 45 • Double your resource value • Use 100% expanded fine- cut for MYO and RYO • Untouchable product quality • Impex – pressure/vacuum technology • DIET - Dry Ice Expansion Technology AircoDIET has supplied more than 55 DIET plants worldwide, many of which have been turn-key. We continuously develop and refine the DIET process and our DIET plants have above 95% uptime with a dry yield better than 98.5% through the plant. Over 100% tobacco expansion expansion expansion expansion As for LUXIN, its main area of business is the production and marketing of alu- minized paper. Over the past few years, LUXIN has been able to continue growing by strengthening its capacity building as well as mergers and acquisitions, and they have managed to achieve and maintain the largest market share for several consecutive years. Close cooperation between cigarette packaging manufacturers and tobacco man- ufacturers is a leading competitive advantage, so acquisitions to increase market shares proved to be a relatively feasible approach for enhancing competitiveness. LUXIN has succeeded in acquiring new production capacities, increasing its market shares, and extending operations into printing thanks to its acquisitions of businesses within the same industrial sector. Over the past few years, LUXIN has acquired several companies including three cigarette pack printing enterprises in 2014, and the remaining 15% of the shares in its subsidiary Fujian Taixing Special Paper. All these developments clearly demonstrate LUXIN's development strategy of growth through mergers and acquisitions. The recent reform of the cigarette packaging manufacturing sector has managed to improve the lot of the decentralized cigarette packaging manufacturers in China, and LUXIN was one of the companies that benefited most. It is expected that its strategy of mergers and acquisitions that has brought LUXIN so many dividends as well as sustainable growth will only gather steam in the future. At a time when cigarette sales in China remain sluggish, LUXIN has been aggres- sively expanding into overseas markets. After obtaining certification for qualification as a supplier for British American Tobacco, LUXIN has seen its market awareness skyrocket, and has registered sharp growth in exports. So far, the company has suc- cessfully penetrated packaging markets in many countries, in partnership with local companies, including PT Djarum, the third largest tobacco company in Indonesia, and Amcor of Australia. In July 2014, LUXIN announced that it had entered the sup- ply chain system for Japan Tobacco International, and is developing a partnership with yet another major transnational tobacco manufacturer, which shows the strong competitiveness of LUXIN's products. Such successful expansion into an impressive number of overseas markets will certainly mean that the company will pursue this line of development in future. In 2013, the company exported some US$20.85 million worth of products, but preliminary data for 2014 show that the company's exports have experienced a massive surge and may have grown by 50% or more year-on-year. It is clear that Chinese cigarette packaging manufacturers are well prepared to meet the latest tobacco industry developments head-on, both at home and abroad. Their strategy has focused on improving the quality of their products and actively seeking opportunities to enter and grow in the overseas markets by integrating resources of the cigarette packaging manufacturing sector and concerted efforts to pave the way for their greater sustainable development in the future.

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