Marlboro to be
produced locally

Total production output will double

The Régie Libanaise des Tabacs & Tombacs has signed a partnership agreement with Philip Morris International (PMI), to manufacture Marlboro cigarettes in its factories.

Régie will be producing several kinds of Marlboro including the Medium, Soft (Gold & Red), and Touch. It will start producing Marlboro Medium in December, and the rest once installing the production line in June 2018.

George Hobeika, Secretary General of Régie, said that Régie will be producing 15,000 boxes (comprising 500 20-cigarette packs per box) per month for PMI. He said that this amount will also include other PMI brands that are available in the market like Chesterfield and L&M.

The total production capacity of Régie for all brands will reach one million boxes in June 2018, double the current capacity of 500,000 boxes.

The partnership agreement will allow Régie to produce exclusively for the local market, and to expand to other markets in the region at a later stage, according to bilateral agreements.

The Régie will sign a similar agreement with Japan Tobacco International, and British American Tobacco to manufacture their brands locally. It has already signed an agreement with Imperial Tobacco, to manufacture the Gitanes Blondes, Gauloises and West cigarette brands.

Revenues from cigarettes reached $665 million last year. According to Hobeika, apart from the manufacturing cost, around $30 million of this revenue went as a commission to retail shops, $10 million to wholesalers, $60 million represents Value Added Tax (VAT), and $169 million customs fees. The net output for Régie was $191 million.