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UGANDA: BAT TO CLOSE FACTORY IN APRIL 2006 AND TRANSFER TO KENYA December 17, 2005
Apunyu Bonny
(SomaliNet) The British American Tobacco (BAT) has announced to close its Uganda cigarette factory in Jinja and transfer the manufacturing operations to Nairobi, Kenya in a major restructuring process. Xinhua Reports.
Head of corporate affairs, Jimmy Kiberu, told press in Kampala on Thursday that the changes were in line with the East African Community that enables BAT to create an integrated business unit for its operations in the region.
"Uganda tobacco leaf will continue to be used in manufacturing cigarettes for domestic market. The Jinja factory will close in April 2006. The restructuring will enable each sister company to specialize and focus on those areas where it commands comparative advantage," he said.
Uganda’s Jinja factory, was set up in 1928, with a capacity to produce of up to 2 billion cigarettes per year, is currently operating at only 50 percent of its capacity. The Current volume is approximately 1.1 billion cigarettes.