Japan: Japan Tobacco strengthens presence in Iran
Japan Tobacco has bolstered its presence in the Iranian tobacco industry through the acquisition of a local cigarette manufacturer, according to a report in the Financial Times.
Through its Iranian subsidiary JTI Pars, the company is said to have purchased tobacco firm Arian Tobacco Industry (ATI) for an undisclosed sum.
Japan Tobacco currently produces cigarette products – including brands such as Winston, Magna and Monte Carlo – at a JTI Pars factory in northern Gilan province. BAT, through its subsidiary BAT Pars, and South Korea's KT&G also have operations in Iran.
In relation to the deal, the Financial Times quotes a Japan Tobacco source as saying: “A growing number of major companies from various countries are now investing or reinvesting in Iran. Our Iranian subsidiary just finalised the acquisition, so clearly this is very recent but we are confident that it will enhance our business in Iran from next year onwards".
"ATI has some strong brands in the growing value segment, the largest in volume, and a state-of-the-art local production facility, very similar to JTI standards", the spokesperson added.
The ATI deal will reportedly mean that more production will now take place at a facility in Zanjan, about 300km north-west of the Iranian capital Tehran.
Source: Financial Times