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R.J. REYNOLDS TOBACCO INTERNATIONAL ENTERS UKRAINE MARKET

 R.J. REYNOLDS TOBACCO INTERNATIONAL ENTERS UKRAINE MARKET
 KIEV, Ukraine, Sept. 16 /PRNewswire/ -- R.J. Reynolds Tobacco International, Inc. announced today that it has entered into two joint ventures in the Ukraine to produce cigarettes for the 80-billion-unit Ukrainian market.
 RJR Tobacco International is the first American cigarette company to invest in the Ukraine, the second-largest of the former Soviet republics.
 The new joint ventures, along with the company's recent investment in St. Petersburg, Russia, make RJR Tobacco International the largest producer of cigarettes in the Commonwealth of Independent States.
 The joint-venture agreements, which have been approved by the Ukrainian government, give RJR Tobacco International controlling interest in the Lviv Tobacco Factory, located in the town of Vinniki on the outskirts of Lviv in the western part of the Ukraine, and the Kremenchug Tobacco Factory, located in the city of Kremenchug in the south central region.
 RJR Tobacco International has a 70 percent interest in each of the joint ventures, with the remaining 30 percent owned by the Ukrainian government.
 The announcement was made today in Kiev by Leonid Makarovich Kravchuk, president of the Ukraine, and Thomas E. Marsh, president of RJR Tobacco International's operations in Eastern Europe and the former U.S.S.R.
 "It is with great pleasure that we unite with one of the world's leading tobacco companies, and we look forward to a long and prosperous relationship that will bring many benefits to the people of the Ukraine," said Kravchuk.
 Marsh called it "a good investment for the Ukraine and a good investment for RJR."
 "We view this as a unique opportunity that will enable us to help improve the quality of local cigarettes and, at the same time, meet the demand for increased cigarette production in the Ukraine," said Marsh. "Our investment means jobs, new technology, and the beginning of increased industrial development in the region."
 RJR Tobacco International's investment will include the purchase of equipment and other plant improvements to increase production and quality of cigarettes produced at the two factories. Total annual capacity of the facilities is expected to increase to nearly 25 billion cigarettes, with potential for additional expansion.
 RJR Tobacco International will produce high-quality and affordable local filtered, non-filtered and papirosy cigarettes, using primarily local tobacco and materials. The cigarettes will be sold in local currency. RJR American-blend brands, such as Camel and Winston -- two of the top 10 best-selling cigarettes in the world -- are expected to be introduced at a later date.
 The company also will provide experienced technicians for on-site training in all areas of cigarette manufacturing, and will work with Western tobacco suppliers to implement programs for improving domestic tobacco agriculture, as well as materials such as paper, filter and packaging materials.
 In May, RJR Tobacco International established RJR-Petro in St. Petersburg in partnership with the former Uritsky Tobacco Factory and became the first American tobacco manufacturer to begin producing cigarettes in Russia. RJR Tobacco International also has acquired a factory in Hungary and is building new manufacturing facilities in Poland and Turkey.
 R.J. Reynolds Tobacco International is one of the world's leading producers and marketers of cigarettes. Its parent company, RJR Nabisco, Inc., is one of the largest consumer products companies in the world, with 1991 sales of $15 billion.
 -0- 9/16/92
 /CONTACT: Brenda H. Follmer of R.J. Reynolds Tobacco International public relations, 919-741-3160/ CO: R.J. Reynolds Tobacco International, Inc. ST: IN: TOB SU: JVN


EA-BN -- AT005 -- 0139 09/16/92 12:46 EDT
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Publication:PR Newswire
Date:Sep 16, 1992
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