a gigantic cigar manufacturer in Dominican Republic its production was affected after the US sanctions against its largest shareholder, the British-Cambodian tycoon Chen Zhia spokesperson for the parent company informed AFP on Monday.
Garcia’s Tobacco Factoryone of the largest producers in the world, is a subsidiary of Spanish group Tabacaleraa subsidiary of the consortium Allied Cigar Corporation.
Zhi is the largest shareholder of said consortium and USA accused him in October of supervising camps forced labor in Cambodia, where victims of human trafficking engage in online scams.
“Tabacalera is being affected by an event totally external to the management of the directors and the company,” he said. Juan Gironhead of communications for the company from Madrid.
Consequences of the blockade
“Due to operational lock in USATabacalera has been forced to temporarily adapt the activity levels and employment in their factories,” he said.
Girón said that minority shareholders They promote the purchase of Zhi’s shares so that he “is completely removed” from the operation. He indicated that he is “confident that the situation can normalize.”
Candido Rosariowho was director of Garcia’s Tobacco Factory for 29 years, told AFP that the factory is currently operating with 20% of its payroll due to the blockade of USA.
The Dominican Republic is internationally recognized as the world’s main production center for Tabacalera de García cigars, located in La Romana. It is the largest factory of handmade premium cigars in the world. Millions of cigars are made there each year for some of the most prestigious and highest volume brands on the international market, including Montecristo, Romeo y Julieta, H. Upmann and VegaFina. The magnitude of its facilities, its productive capacity and the specialization of its workforce make it a central axis of the premium tobacco industry. Founded in 1971, the company accumulates more than five decades of experience, combining artisanal tradition with highly controlled industrial processes. Its greatest strength lies in its human capital: thousands of employees and a team of renowned master blenders, responsible for designing the tobacco blends that define the character and consistency of each brand. The economic impact is significant. In addition to generating direct and indirect employment, tobacco activity is a key driver for the economy of La Romana and a relevant pillar within the Dominican export sector.
From Madrid, through the Altadis company, the international operations of the Imperial Brands group’s premium cigarette business are coordinated, including the management of historical brands and factories in Europe, the Caribbean and Latin America, including Tabacalera de García in the Dominican Republic.
“There is a lot of nervousness at the level of the employees They don’t know what’s going to happen,” he added.
Great Britain It also froze business and real estate assets in London worth more than $130 million related to Zhi’s network, while Taiwan, Singapore and Hong Kong seized assets worth about $350 million.
- Zhi, born in China, appears as the main shareholder of several shell companies based in Europe, Asia and the Caribbean, which ultimately lead to Tabacalera, according to an organizational chart to which AFP had access.
The businessman, who is a fugitive, also founded the giant Cambodian conglomerate Prince, sanctioned by the Asset Control Office Foreigners (OFAC) American.
International business actions
From Madrid, through the Altadis company, the international operations of the Imperial Brands group’s premium cigarette business are coordinated, including the management of historical brands and factories in Europe, the Caribbean and Latin America, including Tabacalera de García in the Dominican Republic.
