New $25 million tobacco plant to increase capacity ten-fold. To launch new local and international tobacco brands - Lebanon

New $25 million tobacco plant
to increase capacity ten-fold
To launch new local and international tobacco brands
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The State owned tobacco monopoly, Régie, will officially open a new factory in Hadath today.

Régie financed around $25 million to rehabilitate the old building and install new machines imported from Germany, Italy and Greece. The total built-up area of the facility is 12,000 square meters.

The production capacity will increase to 35,000 boxes of cigarettes (each box 500 cartons) per month, increasing from 3,000 boxes.

According to Salah Zeidan, Manufacturing and Maintenance Director, the local production of tobacco will change in quality and quantity and “the tobacco industry will start earning profits.” Revenues from Régie to the State reached $530 million in 2014. Zeidan said that revenues are expected to increase this year.

New local cigarette brands will be manufactured in the new facility, such as Cedars light, Cedars Silver, Maestro silver and light. Prices of the new brands will be competitive, according to Zeidan, ranging from $0.60 (LL800) and $0.80 (LL1250).

Régie purchases about 800 tons of tobacco from local farmers. Zeidan said that there was an oversupply in the amount purchased and farmers will be working on enhancing the quality of planted tobacco.

Zeidan said that international tobacco companies will be manufacturing their cigarettes in Régie’s new facility.
Reported by Rania Ghanem
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Date Posted: May 18, 2015