Morogoro. Alliance One Tobacco (T) Ltd, is implementing three projects that seek to improve its processing operations that include processing capacity through a new cigarettes processing line to improve the capacity from the current 35,000 tonnes to 60,000.
Other projects include the introduction of computerised system of loading and receiving of tobacco aimed at reducing handling time and green leaf storage at the factory and introduction of stacking racks.
A statement issued over the weekend by the company when announcing the appointment of a new managing director, Mr Mark Mason, who replaces Mr Graham Kayes, who has been appointed regional director for Alliance One Africa.
Expounding, Mr Mason said the value of the new investments this year is $10 million, bringing the total value of the company to approximately $50 million. He said other projects include installation of optical sorters which remove non tobbaco related materials, conversion of boiler from oil usage to natural gas and installation of AC variable speed drives in motors to reduce power consumption.
He noted that the future for the Tanzanian tobacco industry is strong as long as it remains competitive and continue to improve the welfare of the farmers.
“We appreciate the support the government was giving the industry and believe that we have a major role to play in poverty alleviation whilst remaining focused on health, education and environmental issues,” he said.
However, he said that they have been facing various challenges which include global oversupply situation resulting from increased worldwide production, reduced consumption due to global economic recession, smoking restrictions and bans, increased taxation on tobacco products and tobacco products regulation.
He named the other challenge as reduction in production by 20 per cent due to power problems which causes a loss of $4,000 every hour. He said due to power shortage they are forced to work four days a week instead of six.
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