China Kangtai Cactus Biotech Inc., a leading grower, developer, producer and marketer of various cactus-derived products in China, today announced it has signed a joint manufacturing agreement with China Tobacco Import and Export Shandong Corp., a subsidiary of China National Tobacco Corp., in which the companies will manufacture cactus cigarettes under the name of “Tai Shan Sheng Chao.”
The company will co-manufacture the new brand using a new paper process technology with China Tobacco Shandong’s subsidiary Qingdao Cigarette Factory, with production slated to being in February 2011.
In its 25 years of operation, Qingdao Cigarette Factory has exported more tobacco to 30 different countries and has accumulated more than $461 million in revenue.
China Kangtai Cactus CEO Jinjiang Wang noted his company’s unique position in the market, and how its stated partnerships will enable the company to boost market share and generate revenue.
“This agreement is a very important breakthrough for our cactus cigarette business. In China, cigarette manufacturing is a government monopoly, which designates only one cigarette brand for each province. We are now the first publicly held company to sign a joint manufacturing agreement with a government-owned cigarette manufacturer. This will enable us to make important progress in growing market share for our products and further enhances our revenue growth potential,” Wang noted in the press release.
China Tobacco Shandong General Manager Jianli Bi highlighted how all parties will benefit from the partnership.
“This agreement creates mutual benefit for both companies. The low-nicotine and non-nicotine cactus cigarette product coincides with the government’s initial step to promote less harmful products to the huge smoking population in China. It is estimated that more than 300 million people in China are regular smokers. Furthermore, we plan to export “Tai Shan Sheng Chao” cigarettes to Russia, South Korea and Japan through our established sales channels. We are confident that cactus-based cigarettes have a promising future to broaden shareholder value for both companies in a long term,” Bi stated.
For more information visit www.biocactus.com
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