Jan. 12, 2007 (China Knowledge) – The Chinese tobacco industry will be restructured through mergers in 2007, said Zhang Xiulian, spokesman of the State Tobacco Monopoly Administration on Thursday.

Zhang added that as restructuring within a province has already been completed, the next step will be mergers between cigarette factories across provinces. The number of cigarette factories was reduced from 47 in mid 2006 to 31 by the end of the year. A total of 2.03 trillion cigarettes, or 40 million cartons, were sold in 2006, a 3.9% year-on-year increase.

The administration is aiming to form about 10 major tobacco enterprises through mergers, thereby establishing 10 major brands.