Morrisville, USA, 11 Jan – Tobacco companies Alliance One Brasil Exportadora de Tabacos (AOB) and China Tabaco Internacional do Brasil (CTIB) have signed a definitive agreement to set up a partnership in Brazil, the Alliance One International, Inc group said in Morrisville Monday.
The new company, which will be majority-owned by the Chinese partner with a 51 percent share, will be set up in Venâncio Alves, in the Brazilian state of Rio Grande do Sul, where AOB’s logistics hub is located, and will have an initial processing capacity of 25,000 tons.
Under the terms of the agreement, the AOB will transfer its production contracts signed with around 6,000 tobacco growers for the 20011/2012 season to the new company, whose business will focus on selling higher quality tobacco in Asian markets.
The Alliance One International group, created in May 2005 following the merger of DIMON Incorporated and the Standard Commercial Corporation, is one of the world’s largest sellers of tobacco leaves and its main customers include the world’s largest cigarette and tobacco manufacturers. (macauhub)