CHINA'S tightly-controlled tobacco industry will see more foreign participation following the signing of a co-operative agreement yesterday between US tobacco giant Philip Morris Asia and China National Tobacco Corp (CNTC).
The two companies have agreed to work together to produce and sell the popular Marlboro brand of cigarettes for the Chinese market. They will also develop and produce other brands for both domestic and overseas sales.
CNTC, which makes more than 1.5 trillion cigarettes a year at its 180 plants, will produce Marlboro and other new brands at its own plants.
Philip Morris president Peter Barnes said the agreement came after a year of discussions with CNTC.
A key to the pact is Philip Morris providing CNTC with its production and technical expertise to help modernise China's tobacco industry.
In contrast to the inroads made by foreign firms in other sectors in China, the tobacco industry has been tight for foreign firms to crack.