Yunnan Yuxi Hongta Tobacco Group Co Ltd

Yunnan Yuxi Hongta Tobacco Group Co., Ltd is multinational tobacco enterprise group. Apart from major tobacco industry, it also involves in energy transportation, insurance, medical, and chemical industry. Yuxi, a region in Yunnan Province, is renowned for producing world-famous high-quality tobacco. The area's unique highland red soil and strong ultraviolet radiation contribute to the exceptional quality of its tobacco. This has paved the way for the establishment of one of China's most prominent tobacco manufacturers, the Hongta Group, formerly known as Yuxi Cigarette Factory.

In the Yuxi Cigarette Factory, famous cigarette brands such as "Hongtashan," "Yuxi," "Ashima," "Congratulations New Year," and "Hongmei" have been successively launched. Among 36 prestigious brands in the Chinese tobacco industry, it holds 5 seats, and in 2004, it was selected for the "Hundred Brand Names of Chinese Cigarette Products." "Hongtashan" has held the title of "China's Number One Brand" for seven consecutive years, while the "Hongmei" brand is one of the largest single-brand cigarette brands in terms of production and sales volume in China. Furthermore, mixed-type cigarettes produced by the Yuxi Cigarette Factory, such as "Hongtashan," "MARBLE," "PlAZA," and "ESTON," have been exported overseas. In 2003, the Yuxi Cigarette Factory cooperated with Imperial Tobacco to produce and sell "WEST" brand cigarettes domestically, with promising market prospects.

Product Brands

"Hongtashan" has held the title of "China's Number One Brand" for seven consecutive years, while the "Hongmei" brand is one of the largest single-brand cigarette brands in terms of production and sales volume in China. Furthermore, mixed-type cigarettes produced by the Yuxi Cigarette Factory, such as "Hongtashan," "MARBLE," "PlAZA," and "ESTON," have been exported overseas. In 2003, the Yuxi Cigarette Factory cooperated with Imperial Tobacco to produce and sell "WEST" brand cigarettes domestically, with promising market prospects.

Company Structure

The Yuxi Cigarette Factory currently employs more than 3,000 workers, with an annual production of 2.2 million cases of cigarettes. Its economic and social benefits have ranked at the forefront of the national tobacco industry for many years, and its tax benefits also rank among the top in large enterprises nationwide.

Development History

In 1995, Yuxi Red Tower Tobacco (Group) Co., Ltd., a cross-regional and cross-industry operation with the Yuxi Cigarette Factory as its backbone, was established. As the largest processing and manufacturing base for famous cigarette brands in the country, the Yuxi Cigarette Factory plays a core role within the Red Tower Group.

Awards

In January 2009, it was awarded the honorary title of "Second Batch of National Civilized Units" by the Central Guidance Committee for Spiritual Civilization Construction.

Historical Background

• 1956: Establishment of Yuxi Cigarette Factory.
• 1959: Introduction of the first pack of "Hongta Shan (Red Pagoda Mountain)" cigarettes.
• September 1995: Formation of Yuxi Hongta Tobacco (Group) Co., Ltd. from Yuxi Cigarette Factory.
• December 2005: Renaming of the company to Hongta Tobacco (Group) Co., Ltd.
• June 2007: Reorganization under the State Tobacco Monopoly Administration's "four-centers" strategy, establishing a production and manufacturing center, restoring the Yuxi Cigarette Factory's organizational system.

Current Operations

Yuxi Cigarette Factory has transformed into a compact, highly efficient cigarette manufacturer with a focus on:

• Production arrangement
• Process quality
• Energy saving and emission reduction
• Safe and stable operation
• Team construction

The factory handles the production of high-class and main-brand cigarettes for Hongta Group, boasting an annual production capacity of over 1.80 million cases, making it the largest manufacturer within the Group.

Advanced Equipment and Technology

Yuxi Cigarette Factory is equipped with state-of-the-art machinery for primary and secondary processing, expansion, and redrying:

• Primary Processing Lines: Two lines with 12t/h and 5t/h production capacities.
• Cigarette Making Machines: PROTOS2-2 from Germany, capable of producing 16,000 pieces per minute.
• Packing Machines: GD-H1000 from Italy, packing 800 packs of cigarettes per minute.
• Logistic Systems: Advanced automatic logistics systems incorporating the latest manufacturing technologies.

The factory can produce approximately 10,000 cases of cigarettes daily, with modularized processing to optimize flow and technology.

Management and Operational Strategies

To meet customer orders efficiently, Yuxi Cigarette Factory has adopted several advanced management practices:

• Department-based operation and management
• Responsibility of unit
• Standardized flow management
• Production management per brand
• Special line for fine products
• Internal market-oriented mechanism

Using the "factory management system model" as a platform, the factory has developed a progressive management target achievement route:

• Digital Factory -> Precise Production -> Excellent Performance -> Cultural Management

This approach has enhanced resource allocation, transformed development modes, and optimized the factory's value chain and management chain.

Future Goals

In an era of brand competition within the Chinese tobacco industry, Yuxi Cigarette Factory aims to achieve world-class brand status. The strategic framework focuses on:

• Strategy determining culture
• Culture promoting thought
• Thought directing execution
• Execution driving improvement

The factory is committed to:

• Detailed functional duties
• Perfected systems
• Smooth information circulation
• Strict examination procedures
• Strengthened basic management
• Elaborate production mode promotion

By continuously enhancing management modes, operation mechanisms, production indices, and manufacturing processes, Yuxi Cigarette Factory strives to become a top and leading cigarette manufacturer in the industry.

Conclusion

Yuxi Cigarette Factory's transformation and commitment to advanced technology and management practices have solidified its position as a leader in the tobacco industry. With a focus on quality, efficiency, and continuous improvement, the factory is well-positioned to achieve its goal of creating world-class tobacco brands.