BAT Korea produces more than 300 bil. cigarettes

BAT Korea CEO Mattieu Juery speaks at an event celebrating an accumulated production of 300 billion cigarettes at a factory in Sacheon, South Gyeongsang Province, Thursday. / Courtesy of BAT Korea

By Kwak Yeon-soo

SACHEON ― British American Tobacco (BAT) Korea has surpassed an accumulated production of 300 billion cigarettes as of June, reaffirming its goal to leverage Sacheon factory into a global export hub, the company said Thursday.

This came just three years after reaching a cumulative production of 200 billion cigarettes in 2016.

The tobacco company, whose flagship brands include Dunhill, Kent and Rothmans, has been carrying out a localization initiative to nurture its Korean unit as a key export hub.

Sacheon factory has been serving as BAT's main production facility in the Asia-Pacific region since it began exporting cigarettes in 2004.

Recognized for its outstanding productivity, quality and cost savings, the manufacturing plant currently ships tobacco products to 15 countries, including Japan, Taiwan and Australia.

Sacheon factory annually produces over 34.2 billion units as of 2018, including Tobacco Heating Product (THP) consumables.

At the ceremony held at Sacheon factory in South Gyeongsang Province, the company also highlighted its recent achievements such as winning the “$300 million Export Tower Award” from the Korea International Trade Association and signing a three-year wage agreement.

“I'm very grateful to all BAT employees and partners who made these remarkable achievements possible, showing the leadership of BAT in the transformation of its industry and bringing considerable contribution and benefits to the local economy and Korean society,” BAT Korea CEO Mattieu Juery said.

“Our company is committed to keep on providing Korean consumers with the highest quality of nicotine products, from traditional cigarettes to next generation reduced risk products.”

Apart from BAT Korea representatives and its business partners, Congressman Yeo Sang-gyu, Sacheon City Deputy Mayor Park Sung-jae and Chairperson of City Council Lee Sam-su also attended the ceremony.

Kang Seung-ho, head of the Sacheon factory, shared the plant's production capabilities and quality from a global perspective.

“The Sacheon factory has one of the highest levels of production volume and quality among 55 BAT factories across 48 countries. Based on such strengths, we received IWS Phase 2 for the first time in the group's history in May,” Kang said.

IWS evaluates Overall Equipment Effectiveness (OEE), Meantime Between Failure (MTBF) and Unplanned Downtime (UPDT) for manufacturing competitiveness, according to the company. There are three phases, from zero to two, with phase two being the highest rating possible.

“We're witnessing a rapid transformation in the industry, but we're also faced with stiff competition within the group. BAT factories in Cambodia and Australia have closed down, which means we are one of the nine remaining factories in Asia,” he said. “We plan to increase the production capability to produce 50 billion cigarettes in 2021.”