Even if the tobacco market in Romania fell under the recession-proof industries category, manufacturers have taken steps to reduce spending. In view of the financial crisis, JTI Romania, the country’s third largest tobacco company has put in place measures to improve efficiency and contain costs.
“The industry performed well throughout 2008. But this year will be more difficult, as we expect our business to continue returning profit this year, however modest that may be. Turnover is also expected to increase”, said Gilda Lazar (photo), director Corporate Affairs, JTI Romania.
As for the cigarette maker’s cost-containment measures, Gilda Lazar said JTI hadn’t suspended its investments aimed at improving its manufacturing capacity, and sought other ways to reduce spending. “If an employee was receiving 2 cigarette cartons a month, now he receives only one. If the top management employees were traveling on business class, now they travel on economic class”, said Lazar.
On the other hand, the company has raised salaries and invested large amounts of money in staff training. Furthermore, JTI Romania did not operate any layoff nor it plans to in the near future. The company’s headcount currently stands at 1,000.
Another measure introduced by JTI was the elimination of non-productive brands, such as Saint George and Smart. “We are monitoring the performance of the market, and we may consider further elimination of products accordingly”, said Gilda Lazar.
JTI Manufacturing aims at investing €30 mln in increasing the manufacturing capacity and in the use of computer-based software tools in the production process.
JTI Manufacturing was the first company in Romania to receive the “5S Best in Class” certification after an audit conducted by Kaizen institute.
If 20% of the local production output is exported, the company aims at increasin
