The UK and the UAE are bidding to invest some $20 million on the construction of a cigarette factory in the Qeshm Free Trade Zone in the Arab Gulf, Iran’s official news agency (IRNA) reported Saturday.
Managing director of the Iranian Tobacco Company, Abbas Khajeh-Piri was quoted by the Abrar-e Eqtesadi as saying that the first phase of the factory, built with a five-million-dollar investment, is expected to go on stream in May or early April this year and will produce some 1.1 billion cigarettes each year.
The factory, according to the paper, will eventually be expanded to produce some 5.5 billion cigarettes under the name Bistoon, prepared from high-quality tobacco, the paper cited the managing director.
The plant is intended to discourage smuggling of foreign cigarettes, estimated at 40 billion each year.
The country annually smokes some 45-50 billion cigarettes, saving some 500 billion rials in revenue for the government.
The foreign companies will provide the needed capital for the construction of the factory, its know-how, as well as the raw materials, Khajeh-Piri reportedly said, adding that Iran has undertaken to provide the necessary manpower as well as requirements for the factory’s production line – Albawaba.com
