MILAN, Apr 4 (Class Editori) – The global ambitions of the China National Tobacco could become a driving force for Gima TT, according to what the Chinese monopolist reported to the Financial Times.
In China, as well as in the developed markets, the number of smokers is in decline. Driven by the local economic slowdown and by a greater attention to health, as well as by the effects of the campaign against corruption that sees cigarettes, especially high-end ones, one of the targets to strike, the state giant is willing to challenge its Westerners competitors on a global scale, expanding the traditional export basin in Asian countries, and introducing new generation products into the domestic market.
It is no coincidence that last year the group appointed the subsidiary China Tobacco International as an "international platform for the expansion of the Chinese tobacco industry" as stated in the documents for the listing in Hong Kong.
"This would be an important opportunity for Gima TT, that recently entered into the Chinese market, but even in this case the decision timing is difficult to foresee," write Equita analysts, while stating that the decision timing is difficult to predict.
In July 2018 the company of the Ima group from Bologna, led by Alberto Vacchi, signed an agreement with Shanghai Tobacco Machinery, controlled by the State monopoly, for the supply of cigarette packaging.
The contract allowed its own customer base, extending its presence in Asia in Japan, Korea, Singapore, Indonesia, Cambodia and Hong Kong. The signed agreement was the finish line of a journey started the year before with the recognition of Gima TT as a government certified supplier.
"China represents the main world market for tobacco consumption and offers an equally significant potential in the development of new generation products, our area of specialization. This first project is extremely important, as it represents the access to future supplies of packaging lines not only for conventional cigarettes, but above all for the new generation products," explained the CEO Fiorenzo Draghetti a year ago in conversation with MF-Milano Finanza.
The company, listed since October 2017 at the Piazza Affari Star, closed 2018 with revenues of 182.9 million euros, up 20.5% compared to the 151.8 million realized the previous year.
(Source:Class Editori)
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