Cairo – Mubasher: Eastern Co has signed a five-year joint production agreement with Al Mansour International Distribution Company.
The Egyptian tobacco firm will partner up with Al Mansour International, licensed by the German owner of the cigarette brand West Reemtsma Cigarettenfabriken, to produce and distribute West cigarettes in the local market, Eastern Co said in a filing to the Egyptian Exchange (EGX) on Thursday.
The agreement will last for five years starting 21 March 2018 until 20 March 2025, according to the filing.
As per the agreement, profits and losses will be evenly divided between the two firms after deducting West’s distribution and selling expenses, the EGX-listed company added.
Al Mansour will manage the marketing, distribution, and sale of the joint product in Egypt, the company noted.
Eastern Co is projected to sell 281 million cigarettes at a price of EGP 18 per pack in 2018, the company pointed out.
