Star Tobacco International will use capacity at McCroft Tobacco Factory (MTF) in Kosovo to produce cigarettes, cut-rag tobacco and cut-rolled expanded stems for markets in the Mideast and Mediterranean regions, the leaf merchant said.

MTF shareholders agreed to a deal under which capacity to make 20,000 master cases of king-size cigarettes and 300 tons of cut rag per month will be reserved for Star. The tobacco company based in Hong Kong will have an option on up to 1,000 tons of cut-rolled expanded stems (CRES) annually, Star said. Start-up is planned for March, 2015.
“As Star’s business and engagement with government monopolies in North Africa and the Middle East is on a positive upward momentum, the strategic location of this production hub coupled with low operating costs makes this an excellent business development opportunity for the company”, Star said.