Filtrona and BBM Bommidala Group have formed a joint venture to manufacture cigarette filters in the United Arab Emirates, Filtrona announced.
“The formation of this joint venture agreement with BBM strengthens Filtrona’s presence in the growing Middle Eastern market,” said Filtrona Chief Executive Officer Colin Day. Market volume in the Mideast/Africa region is growing about 3 per cent a year, and production is about 400 billion sticks annually, equivalent to 80 billion filter rods, the company said.
The JV will be fully operational in the third business quarter, said Filtrona. Based in the United Kingdom, Filtrona’s cigarette filter operations make it the world’s largest independent supplier to the tobacco industry. BBM is India’s leading cigarette exporter with annual production capacity in excess of 6 billion sticks.
Separately, Filtrona announced full-year operating profit in its filter products division rose 18 per cent, adjusted for foreign currency fluctuation, to GBP 28.9 million (EUR 33.2 million). Revenue increased 12.3 per cent to GBP 233.6 million. (ci)