Rothmans to take Russia by storm
Saturday 06 March 1993
The tap on the huge Russian cigarette market - estimated at between 180 and 190 billion cigarettes annually - is expected to be running in just over two years.
Rothmans will own 75 per cent of the venture, called Rothmans Nevo. Investment by Rothmans is expected to be around pounds 55m, largely covering construction costs and plant and equipment.
Jan du Plessis, Rothmans' finance director, said the venture was a 'long-term project and will complement our existing licensing arrangements in Poland and the former Yugoslavia'.
Lord Swaythling, the chairman, added: 'The agreement with Nevo is intended to consolidate our position in the market following the sharp growth experienced in our export sales to Russia over the past 12 months.'
Cigarette brands that will be produced at the factory will include Rothmans and Dunhill, as well as Russian ones already made by Nevo.
The news was met favourably in the City, with an 8p rise in Rothmans' shares to 643p. Nyren Scott-Malden, tobacco analyst at BZW, said: 'It's the logical thing to do and although there will be no real return for several years, the longer-term outlook is good.'
The company's move contrasts with those made by other tobacco giants like Philip Morris and Reynolds, which have opted to buy established factories.
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Lego breaks out of the toy box and heads for the gallery
- 4 Julian Assange and Edward Snowden join piracy mogul Kim Dotcom’s political campaign in New Zealand
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: Police will be on high alert on Friday whatever the result
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...