Japan Tobacco International's takeover of cigarette producer Gallaher boosted its domestic turnover in RON by around 37%, after JTI kept both the employees of the acquired player, and several brands, such as Smart, Ronson and Sobranie.
As a result, last year JTI generated turnover estimated at around 389m euros (1.3bn RON).
"The contribution of Gallaher was significant, we now have a much more solid financial base and a more competitive portfolio of brands. The increase on 2006 revolved around 40% and came amid the rising sales volume and larger product portfolio," said Gilda Lazar, corporate affairs manager with JTI Romania.
JTI kept around 85 Gallaher employees, who were relocated to the company's plant. "One of the main factors behind Gallaher's integration envisaged the incorporation of the company's production activities, namely the transfer of brand production to the JTI plant. In the wake of the move, the Gallaher plant closed at the end of last year," explained Lazar.
In 2007, JTI Romania's production revolved around 8 billion cigarettes, while this year company officials estimate production will rise by around 20%. "Production will be adjusted in line with the company's needs, namely increasing export volumes, expanding the brand portfolio, and launching new product types," said Gilda Lazar.
This year, JTI Romania will export 14% of overall volumes. As regards imports, two brands from the company's portfolio (Sobranie and Glamour) are produced outside Romania, in Poland, just like the brand Winston Super Slims.
For this year, the company forecasts a one-digit growth rate in terms of sales volume and a two-digit growth in terms of value, while the market is expected to register a slight drop. "The market volume has remained constant over the past 2 years, at around 35 billion cigarettes, with a slight drop expected in 2008, to 34.5 billion," said Lazar.
JTI Romania
Saw domestic turnover rise by 37% in RON after it acquired cigarette producer Gallaher
Last year generated turnover worth around 389m euros (1.3bn RON)
Retained around 85 Gallaher employees, who were relocated to the company's plant
In 2007 production revolved around 8 billion cigarettes, and is expected to rise by around 20% in 2008
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