China Tobacco International do Brasil (CTIB) plans to invest US$20 million in 2015 in joint venture China Brasil Tabacos Exportadora (China Brazil Tobacco Exporters – CBT) in the Brazilian state of Rio Grande do Sul, announced the vice-president of CTIB.
Ye Hai told the China Daily newspaper that total investment would be US$40 million.
The location for construction of factories, warehouses and offices will either be Santa Cruz do Sul or Venancio Aires, he said.
Ye Hai said CBT buys about 25,000 tonnes of tobacco per year from Brazilian producers.
CTIB was created in 2012 in partnership with US company Alliance One Brasil Exportadora de Tabacos (AOB).
CTIB, a subsidiary of China Tobacco International (CTI), started operating in Brazil in 2002 and buying tobacco from Brazilian producers in 2009.
Brazil is the second largest exporter of tobacco to China with 25,770 tons in the period between 2010 and 2014, accounting for around 35 percent of total Chinese tobacco imports.
In 2012 China produced around 40 percent of the world’s tobacco followed by Brazil with 27 percent. (macauhub/CN/BR)