Changes at BAT
Dec 15, 2005
THE British American Tobacco is to close its Jinja cigarette factory and transfer the manufacturing operations to Nairobi, Kenya in a major restructuring process.
By Mary Karugaba
THE British American Tobacco is to close its Jinja cigarette factory and transfer the manufacturing operations to Nairobi, Kenya in a major restructuring process.
The head of corporate affairs, Jimmy Kiberu, told reporters yesterday 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.
Kiberu, who was flanked by the company secretary, Richard Wejuli and corporate and social responsibility manager, Simon Kaheru, said the changes would affect 68 employees.
He said Uganda would be elevated as the group’s worldwide centre for excellence in leaf growing, processing and export, marketing and cigarette distribution.
“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 specialise and focus on those areas where it commands comparative advantage,†Kiberu said.
“This is a business decision that the group took after Uganda was elevated to the fifth position in tobacco growing worldwide. This meant that we had to focus more on an area where we are doing well,†he said.
Wejuli said though the production capacity for the Jinja factory, which manufactures largely for domestic market, was two billion sticks annually, it was operating at only 50%.
Ends
THE British American Tobacco is to close its Jinja cigarette factory and transfer the manufacturing operations to Nairobi, Kenya in a major restructuring process.
The head of corporate affairs, Jimmy Kiberu, told reporters yesterday 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.
Kiberu, who was flanked by the company secretary, Richard Wejuli and corporate and social responsibility manager, Simon Kaheru, said the changes would affect 68 employees.
He said Uganda would be elevated as the group’s worldwide centre for excellence in leaf growing, processing and export, marketing and cigarette distribution.
“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 specialise and focus on those areas where it commands comparative advantage,†Kiberu said.
“This is a business decision that the group took after Uganda was elevated to the fifth position in tobacco growing worldwide. This meant that we had to focus more on an area where we are doing well,†he said.
Wejuli said though the production capacity for the Jinja factory, which manufactures largely for domestic market, was two billion sticks annually, it was operating at only 50%.
Ends