Reemtsma will buy the majority share of Tobačna Tovarna Ljubljana (Tobacco Factory Ljubljana)

Ljubljana, 30 September - One of the leading European producers of cigarettes, Reemtsma from Hamburg has together with the French national concern Seita, bought the majority share of Tobačna Tovarna. At today's press conference the public was informed of Reemtsma's acquisition, who with 76% holding became the prime stockholder in Tobačna Tovarna. The negotiations were lead by the Agency for Privatization of the Republic of Slovenia and the Fund of the Republic of Slovenia. As the General Manager of Tobačna Tovarna, Bojan Simonič commented, the management of this company had for some time been aware of the necessity for establishing firm connections with foreign markets and for investing in technological and personnel development, since the conditions in the tobacco industry are changing rapidly. It was emphasized that Tobačna Tovarna is not working at a loss and is at present one of the leading Yugoslav tobacco producers. Foreign partners invested 110 million German Marcs. This amount will be transmitted through the Fund of Republic of Slovenia into Slovenian economy. With this purchase, Reemtsma hopes to improve its strategic starting-point on the Southeast European market. High Western technology will in this way reach Slovenia and enable further development of American blend, light cigarettes which are not so harmful. The foreign partner ensures that Tobačna Tovarna will keep its national identity which also means that all 1700 employees will remain at their posts.