BATU to inject $3m in processing plant
Apr 14, 2006
British American Tobacco(BATU) is to spend $2.9m (about sh5.3b) to improve its processing plant and upountry collection centres, Glenn Sheppard, the managing director has said.
By Vision Reporter
British American Tobacco(BATU) is to spend $2.9m (about sh5.3b) to improve its processing plant and upountry collection centres, Glenn Sheppard, the managing director has said.
“We are upgrading our Kampala plant to ensure that the tobacco leaf produced meets world standards,†Sheppard, said during the well-attended annual general meeting in Kampala on Tuesday.
BATU’s board chief, James Mulwana, chaired the meeting.
Sheppard said the company had also started modernising its purchasing and collection points upcountry to minimise foreign matter, which affects the standard of tobacco.
Sheppard said the company would continue utilising the Jinja plant.
“We will continue using it for leaf and imports storage and distribution,†Sheppard said.
He said because of its commitment to quality, BATU had been identified as one of the group’s five strategic tobacco leaf sources for its global operations.
Other sources are Brazil, Zimbabwe, India and Indonesia.
Sheppard said the company would invest another sh7b in the 2006 crop.
“Our major objective this time is to ensure that quality leaf is produced at the end of the day,†he said.
About 98% of the tobacco leaf processed by the company is exported to the EU and Asia.
Sheppard told shareholders that rampant power cuts had reduced the processing plant’s productivity by between 25% and 50%.
“It is a worrying development. We hope a quick national solution would be found reverse the negative impact on business,†Sheppard said.
British American Tobacco(BATU) is to spend $2.9m (about sh5.3b) to improve its processing plant and upountry collection centres, Glenn Sheppard, the managing director has said.
“We are upgrading our Kampala plant to ensure that the tobacco leaf produced meets world standards,†Sheppard, said during the well-attended annual general meeting in Kampala on Tuesday.
BATU’s board chief, James Mulwana, chaired the meeting.
Sheppard said the company had also started modernising its purchasing and collection points upcountry to minimise foreign matter, which affects the standard of tobacco.
Sheppard said the company would continue utilising the Jinja plant.
“We will continue using it for leaf and imports storage and distribution,†Sheppard said.
He said because of its commitment to quality, BATU had been identified as one of the group’s five strategic tobacco leaf sources for its global operations.
Other sources are Brazil, Zimbabwe, India and Indonesia.
Sheppard said the company would invest another sh7b in the 2006 crop.
“Our major objective this time is to ensure that quality leaf is produced at the end of the day,†he said.
About 98% of the tobacco leaf processed by the company is exported to the EU and Asia.
Sheppard told shareholders that rampant power cuts had reduced the processing plant’s productivity by between 25% and 50%.
“It is a worrying development. We hope a quick national solution would be found reverse the negative impact on business,†Sheppard said.