Filtrona Paraguay – to re-enter local market

Filtrona PLC issued a press release recently announcing that Filtrona Paraguay – located close to Ciudad Del Este – will re-commence supplying local customers with cigarette filters.

Filtrona bowed to pressure from BAT and PM some three years ago and withdrew from the local market – which is considered to be the source of most of the no-tax-paid cigarettes entering Brazil. This left the plant with excess capacity and neither BAT nor PMI reciprocated with sufficient replacement business to warrant continuing the strategy. Both multi-nationals have been informed it said.

What next? Will the multi-nationals renew their efforts to discourage participation and supply in this market?

Was Filtrona singled out?

Will Filtrona continue? They re-entered once before and quickly withdrew again?

Can they effectively compete against their new local competitor Global Filter – which established itself from the void created by Filtrona’s initial withdrawal?

Will local customers embrace Filtrona’s about turn?

Comments appreciated.

1 comment so far ↓

#1 Piet Pieterse on 06.21.11 at 10:30 AM

Filtrona Paraguay, Global Filter, Brasfumo: it is all the same. Mr. Franklin Souza running the show. What is worse: making again a bad reputation to Paraguay, without paying proper taxes, because of maquila rules which is intented to stimulate exportation.

Leave a Comment