NON-TOBACCO MATERIALS

Non-tobacco materials used in the production of cigarettes account for about 25-45% of the product cost of filter cigarettes. Statistics show that Cat Loi Joint Stock Company – an affiliate of the Corporation is currently the leading business in the field of manufacturing and trading non-tobacco materials, is leading the market in the sector in terms of quality and prices owing to the advantage of large, stable supply scale, capacity and production technology are of advanced standard.

Cat Loi Joint Stock Company, formerly known as Tobacco Packaging, Printing, and Non-tobacco Materials Enterprise, was founded in 1992. As an affiliate under the Corporation, it substantially supplies packaging and non-tobacco materials to overall cigarette production businesses across the country.

Technology enhancement is the top strategic goal of the company to improve product quality. It lays out a policy of investing in new equipment and technology from advanced countries for the purpose of providing the market with good quality products at reasonable prices.

· Filter rods: Accounting for 47% of the demand of the industry and 80% of the Corporation.

· Tipping paper: Taking the lead in tipping paper by supplying 72% of the demand of the industry and 87% of the Corporation.

· Packaging: Just providing 42% of the hard pack demand of the Corporation and 29% of the industry.

Apart from Cat Loi Joint Stock Company, the Corporation also owns 50% of the stakes in Vina – Toyo Packaging, which is currently engaged in supplying cartons for a number of cigarette brands of the Corporation and other cigarette production businesses. Supplying volume reaches approximately 32% of the overall demand of the Corporation.