Alcohol and Drug Information Centre (ADIC - Ukraine)

2. Production

Overview of tobacco production in Ukraine till 2001 is presented in the report Economics of tobacco control in Ukraine from the public health perspective (http://adic-ukraine.narod.ru/adic/reports/econ/ch-1/1-4.htm). Since 1999 cigarette production in Ukraine grew and it more than doubled in 1999-2005 (Table 2). Presently, tobacco production in Ukraine is 1.5 higher than in Soviet times.

Table 2. Production of cigarettes in Ukraine in 1999-2005

FACTORIES

1999

2000

2001

2002

2003

2004

2005

Philip Morris (Kharkiv)

9,43

14,06

19,08

19,30

23,59

31,08

37,49

B.A.T. (Priluki)

6,40

10,77

19,01

24,02

24,28

23,98

22,41

Reemtsma (Kiev)

15,49

11,86

13,68

20,87

21,59

20,41

23,80

Gallagher (Cherkassy)

12,67

10,29

6,13

5,80

13,74

17,55

18,05

JTI  (Kremenchuk)

5,27

8,43

7,38

6,90

9,07

11,33

14,86

All joint ventures in total

49,26

55,41

65,28

76,89

92,27

104,35

116,61

Pheodosia

1,06

0,71

1,71

 

1,18

0,71

0,71

Dnipropetrovsk

0,53

0,39

0,15

 

0,20

0,04

closed

Odessa

0,04

0,05

0,02

  closed    

Monastyrishce

0,65

0,29

0,44

 

1,06

0,58

0,80

Kamenets-Podolsky

2,18

1,05

0,31

 

0,07

0,04

0,02

Donetsk

 

0,4

0,36

 

0,53

0,99

0,77

Lviv

 

0,37

0,63

 

1,09

1,43

0,75

Others

 

0,12

0,46

 

0,47

0,37

0,34

All Ukrainian factories in total

4,46

3,38

4,08

4,13

4,6

4,16

3,39

TOTAL

53,7

58,7

69,44

81,02

96,87

108,51

120

In the early 1990s, the state tobacco and cigarette monopoly was dismantled. As elsewhere in Eastern Europe, transnational tobacco companies (TTC) developed joint ventures with the former state-run companies. Foreign investors established joint ventures with six of the eleven cigarette factories operating in Ukraine. Their joint project capacity was 55 billion cigarettes annually, while the joint capacity of the remaining five factories was only 15 billion. In 1994, 1996, and 1998, the six joint ventures produced respectively 79, 84, and 93% of the total production in Ukraine. In 1999, despite the closure of the RJR-JTI factory in Lviv, the share of five joint ventures production was 92%, and then it increased to 94% in 2000 and 97% in 2005.

TTC factories

The production share of Reemtsma, BAT, and RJR-JTI in 1994-2000 was more or less stable: 40%, 17%, and 17% respectively. Philip Morris increased its share from 4% in 1994 to 25% in 2000. In 2001, the production shares of Philip Morris, Reemtsma and BAT were almost equal – 27-28% with 11% for JTI. In 2001 Reemtsma has sold one of its two Ukrainian factories (in Cherkassy) to Gallaher. In 2002-2005 the production shares were the following: Philip Morris – 27.4%; BAT – 23.3%; Reemtsma – 21.3%; Gallaher – 13.6%; JTI- 10.4%; non-TTC factories – 4.0%.

Ukrainian owned factories

There were 8 medium factories in 2000. The annual production of each of these factories in 1995-2000 was from 0.05 to 3 billion pieces. The new factories (in Donetsk and Lviv) increased production in 2001-2004 and then decreased it in 2005 (Table 2). Among the old factories only Monastyrische and Pheodosia factories worked rather stable, while Dnipropetrovsk, Odessa and Kamenets-Podolsky factories decreased their production and were closed.

In 2001, eleven small enterprises produced 462 million cigarettes (0.67% of total production). In 2005 only two remaining small enterprises (Dana and Dubek) reported production of 343 million cigarettes.

Content 'Tobacco or Health in Ukraine. Economic issues, 2006 update'

Next

Who we are?

History

Projects

Reports

Papers

Publications

Сайт противостояния табачной индустрии
Журнал тех, кто не боится быть трезвым
Coalition for tobacco free Ukraine
Центр помощи бросающим курить КВИТ
Международная Независимая Ассоциации Трезвости (МНАТ)
Alcohol and Drug Information Centre - ADIC-Ukraine

 

Hosted by uCoz