Danville tobacco company announces joint venture
DANVILLE — J.E.B. International Co., a tobacco supplier in Danville, has entered into an agreement with Japan Tobacco Inc. and Hail & Cotton in Tennessee to form a joint venture company for procuring and processing U.S. leaf tobacco.
The joint company, JTI Leaf Services LLC, will supply contracted U.S. tobacco exclusively for Japan Tobacco Inc.’s needs. U.S. leaf tobacco is renowned for globally for its high quality and rich flavor.
Sharp increases in various crops in the past few years have caused leaf tobacco costs to remain high and induced volatility in supply sources, according to a press release from the JT Group.
The joint venture, in addition to JT Group’s acquisition of Tribac Leaf Limited, will offer the JT Group enhanced stability and capability in procuring high-quality leaf tobacco and allow it to grow its tobacco business in a sustainable manner.
Copyright © 2009 Godanriver
