JTI to Invest €30 Million to Expand Tobacco Production Capacity in the Canary Islands
The investment aims to increase production by 20% this year and create 34 new jobs.
Japan Tobacco International (JTI), a leading multinational in the tobacco industry, has announced a significant investment of approximately €30 million to enhance the production capacity of its factory located in Tenerife, Canary Islands.
This facility is the largest cigarette production plant in Spain.
The expansion plan, set to be implemented over the next three years, is projected to increase the plant's production output by 20% within this fiscal year, contributing to an overall growth of 60% over the past four years.
Currently, 60% of the production from this plant is directed towards export markets, and the expansion is expected to create 34 new quality jobs, adding to the existing workforce of over 260 employees.
John Freda, General Manager of JTI Iberia, highlighted the strategic importance of the Canary Islands for the company, citing the region's deep-rooted tobacco tradition and expertise in the sector.
Freda emphasized that institutional commitment, legal and tax security, transportation incentives, and local expertise have been crucial factors in JTI's decision to continue investing in the islands.
Since acquiring the historic CITA factory in 2007, JTI has invested around €85 million into the facility over the past decade, with more than half of that amount allocated in the last four years.
This investment strategy has led to improvements in operational efficiency, quality, and innovation, thereby establishing Tenerife as JTI's European production center for cigarillos (cigarettes wrapped in tobacco leaf).
In 2023, the tobacco industry contributed a Gross Value Added of €520 million to the Canarian economy, sustaining 5,000 jobs and demonstrating a labor productivity of €284,000 per employee, significantly higher than the regional average.
The sector also accounted for €284 million in tax revenue, making tobacco the second-largest export sector in the Canary Islands, following petroleum refining.
Through this latest investment, JTI reinforces its commitment to local economic development, the cultivation of local talent, and the international promotion of products manufactured in the Canary Islands.
This facility is the largest cigarette production plant in Spain.
The expansion plan, set to be implemented over the next three years, is projected to increase the plant's production output by 20% within this fiscal year, contributing to an overall growth of 60% over the past four years.
Currently, 60% of the production from this plant is directed towards export markets, and the expansion is expected to create 34 new quality jobs, adding to the existing workforce of over 260 employees.
John Freda, General Manager of JTI Iberia, highlighted the strategic importance of the Canary Islands for the company, citing the region's deep-rooted tobacco tradition and expertise in the sector.
Freda emphasized that institutional commitment, legal and tax security, transportation incentives, and local expertise have been crucial factors in JTI's decision to continue investing in the islands.
Since acquiring the historic CITA factory in 2007, JTI has invested around €85 million into the facility over the past decade, with more than half of that amount allocated in the last four years.
This investment strategy has led to improvements in operational efficiency, quality, and innovation, thereby establishing Tenerife as JTI's European production center for cigarillos (cigarettes wrapped in tobacco leaf).
In 2023, the tobacco industry contributed a Gross Value Added of €520 million to the Canarian economy, sustaining 5,000 jobs and demonstrating a labor productivity of €284,000 per employee, significantly higher than the regional average.
The sector also accounted for €284 million in tax revenue, making tobacco the second-largest export sector in the Canary Islands, following petroleum refining.
Through this latest investment, JTI reinforces its commitment to local economic development, the cultivation of local talent, and the international promotion of products manufactured in the Canary Islands.
Translation:
Translated by AI
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