Lebanon Businessnews News
 

Régie to double
production capacity in 2016
A total of $7 million in investments for new production line
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Régie, the State-owned tobacco monopoly, will expand its factory’s production capacity in Hadath, in 2016.

George Hobeika, Secretary General of Régie, said: “Demand for the new types of local cigarettes ‘Cedars Silver’ and ‘Cedars Plus’ is increasing, so we will install new production lines to double production.”

Production will reach 290,000 boxes (500 packs per box) and will be entirely dedicated for the local market. Hobeika said that international companies have shown interest in manufacturing their cigarettes in Régie’s factory.

Investment in the new production line is estimated at $7 million. Régie financed around $25 million this year to rehabilitate the old Hadath factory and to install new equipment. The total built-up area of the facility is 12,000 square meters.

Revenues from Régie to the State are expected to reach $470 million, decreasing from $530 million in 2014. “This decrease is due to the fact that customers are leaning towards consuming low-priced cigarettes.”
Reported by Rania Ghanem
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Date Posted: Dec 22, 2015