SEPTEMBER 4, 2002
Gallaher looks to China
Gallaher, the owner of Jordan's sponsor Benson & Hedges is about to announce a major deal to break into the Chinese market. The company has signed a letter of intent with the China National Tobacco Corporation to manufacture and distribute cigarettes in China. The deal will involve CNTC producing Gallaher's brands in China and Gallaher producing CNTC products for the Russian market.
China has an estimated 300m smokers and the tobacco companies are keen to get into the market. This is part of the reason for the big push for a Chinese GP.
It is worth noting that Gallaher has also announced its profits for the last six months which are 23% up on last year, an indication that, as usual, tobacco companies do well in recessions.
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