Issue link: https://read.dmtmag.com/i/743340
36 tobaccoasia MANUFACTURING NEWS 制造新闻 TURKEY Turkey Extends Banned Items The list of items prohibited from being used in the manufacturing of tobacco products has been updated by Turkey's Tobacco and Alcohol Market Regulatory Authority. The Authority requires that manufacturers which are currently using the newly prohibited items must apply to the authority stating that non-compliant products will now be produced in line with the new rules. If no application is made by October 31, 2016, the related product's Market Conformity Certificate will be cancelled. The following items are now prohibited during production of tobacco products which will be placed in the Turkish market, as well as production of the raw materials extracted from tobacco plants: benzene, methylene chloride, tetrachloroethylene, phenol, acetalde- hyde, furfural, glyoxalin, acrylamide, mineral oil, paraffin, and hydro treated light heavy naphthenic. The ban includes production of cigarette papers and additives; edge binding gums; ink on cigarette papers; filtration substances; filter papers and adhesives; and adhesives, adhesive inks, and gums. ZIMBABWE GLT Plant in Zimbabwe Gold Leaf Tobacco, the South African- based cigarette manufacturer, is planning to set up a manufacturing plant in Zimbabwe following the launch of its brand, Rudland & George (RG) there. "Following the launch of our brand in Zimbabwe, I can safely say we are looking at setting up a manufacturing plant in Zimbabwe, but it's still in the planning phases," said Tanaka Matimbe, Gold Leaf's country representative. "We see great potential in Harare because it is central to our bigger market which is the Southern African Develop- ment Community region which we have been looking at getting into," he added. "So we have plans to be a manufacturing concern in Zimbabwe." According to Matimbe, Zimbabwe is to be the company's springboard into the regional market, and that the company is looking at registering its footprint in Zambia, Malawi, and Mozambique. BOSNIA Bosnia Acquisition for BAT British American Tobacco (BAT) revealed that it intends to acquire the tobacco assets of Bosnian holding firm Fabrika Duhana Sarajevo (FDS) from a regional government in the country. The transaction is being carried out indirectly via CID Adriatic Investments (CID) and is part of attempts by Bosnia's Bosniak-Croat Federation to plug a hole in its budget by privatizing state-owned enterprises. Using financing provided by BAT, CID bought the government's 39.9% stake in FDS. The company said it would make a later bid for the remainder of the company at the same price, also using BAT financing. "Upon successful completion of CID's takeover offer for the remaining shares of FDS, British American Tobacco will enter into exclusive negotiations for the potential purchase of certain tobacco assets of FDS," BAT said in a statement. The deal is said to have been structured so that BAT would not need to take possession of FDS's non-tobac- co assets, which include banking and real estate operations. The sale of the government's stake is expected to bring 42.7 million Bosnian marka (US$24.4 million). CID will later offer the same price of BM 83.5 per share for the remainder of the company. The remainder of FDS is owned by local subsidiaries of Austria's Raiffeisen Bank and Italy's UniCredit SpA, as well as investment funds and small share- holders. BAT already owns tobacco plants in Serbia and Croatia. INDIA No Incentives for Tobacco Factories The Maharashtra state government decided in September not to grant incentives to units manufacturing beer, liquor, cigarette, bidi, gutkha, and pan masala. An official order issued by the industries department declared that units manufacturing beer, liquor, cigarette, bidi, gutkha, and pan masala will not be eligible for incentives under the package scheme of incentives 2013. "Under the package scheme of incentives, the state government is granting massive conces- sions in electricity duty, stamp duty and value added tax," said a senior depart- ment official. It was revealed that a high-level committee headed by chief secretary Swadheen Kshatriya recommended not to grant incentives to these units, particularly in view of the fact that gutkha and pan masala have been banned in the entire state, while liquor and tobacco products are banned in some districts. Subsequently, at a meeting presided over by CM Devendra Fadnavis, it was decided to accept the recommendation made by the chief secretary's committee. "New units will not be eligible for incentives. However, old units will continue to get the benefits," he said. ITALY PMI Inaugurates PREPs Facility In September Philip Morris International (PMI) inaugurated its first manufactur- ing facility for large scale production of two heated tobacco alternatives to cigarettes. The announcement was made at an event at the factory in the presence of the Italian prime minister, Matteo Renzi. The initial annual production capacity of the factory will be approxi- mately 30 billion units. "Our ambition is to lead a full-scale effort to ensure that non-combustible products ultimately replace cigarettes to the benefit of adult smokers, society, our company and our shareholders," said André Calantzopoulos, PMI's chief executive officer. "This factory is a milestone in our roadmap toward this paradigm shift. This investment underscores our strong commitment to Italy and in particular to the Bologna region, which is not only home to one of our most technologically advanced filter factories located in Zola Predosa, but which also offers great infrastructure