Continental Tobacco Co. Ltd. has opened a new tobacco finished goods warehouse in Sátoraljaújhely.

The finished goods warehouse, which was implemented as part of a development program with a total budget of HUF 14.5 billion, is a key element of the Continental Tobacco Industry Group’s modernization strategy. The program includes real estate development, the purchase of machinery and measuring instruments, the installation of a solar panel system, and the modernization of the tobacco factory’s warehouse technology. The development provides a solid foundation for further strengthening the company’s export capabilities: currently, around half of Continental’s revenues come from foreign markets, and the company’s long-term goal is to increase this to 75 percent. 

The new warehouse and office complex consists of a modern high-rise warehouse of almost 4,000 square meters and a 262 square meter service building. The ground floor of the building houses offices, changing rooms and communal areas, while the upper floor houses a production hall for the production and packaging of additional cigar products. The finished goods warehouse can accommodate 3,000 pallets and has a 16-station sorting department that can handle products from 16 packaging machines simultaneously. The finished products are transferred from the factory to the new warehouse on an automated conveyor belt, minimizing human intervention and logistical losses. 

Péter Szijjártó said that Hungary, as an open economy, generates a significant portion of its GDP from its foreign trade turnover, therefore every export expansion investment is of strategic importance. As a result of Continental’s investment, the company’s exports are increasing significantly, which directly contributes to the growth of the Hungarian economy. No less important is the fact that the company provides a stable livelihood for thousands of tobacco farmers in the region. The minister added: “The government is ready to cooperate with the tobacco industry players to ensure that the European Commission’s tobacco excise tax increase plans lead to reasonable regulation.” “Our investment is not only about capacity expansion, but also proves that the Continental Tobacco Industry Group plans for the long term and is committed to Sátoraljaújhely and the region. A significant part of the products produced by our employees in Sátoraljaújhely already reach more than forty countries around the world, and our goal is to further increase the volume of exports. This ensures that – as in recent decades – we will be able to provide a stable livelihood for the people living here in the future as well,” said Zoltán Magyari, CEO of Continental Tobacco Industry Zrt. lang=”en”>An ecosystem employing thousands of people in Northeastern Hungary

The operations of the Continental Tobacco Industry Group are closely intertwined with Hungarian agriculture. The company is a stable, reliable buyer of nearly 40 percent of domestic tobacco production. Thanks to its vertically integrated model, it processes and then sells the tobacco raw material as a finished product – thus ensuring a secure market and predictable income for thousands of producers. The group indirectly employs more than 4,000 tobacco farmers in Hungary, for whom tobacco production is not only a livelihood, but also a heritage spanning generations.

The company’s products – traditional cigarettes, natural-wrapped cigars, fine-cut tobaccos, and modern smokeless products – nicotine pads – are available on the markets of nearly 40 countries. 50 percent of Continental’s net sales revenue comes from exports, which contribute to Hungary’s positive foreign trade balance and the economic performance of Hungarian agriculture. The European Commission’s plans for an extreme tobacco excise tax increase currently on the table threaten this ecosystem and could adversely affect the livelihoods of thousands of Hungarian families.

A comprehensive modernization program in Sátoraljaújhely

The handover of the finished goods warehouse is the latest stage in a conscious development program that has been going on for several years. The Continental Tobacco Industry Group began capacity expansion in 2018. In 2021, a modern, three-story tobacco preparation plant was built at the factory as part of a program worth nearly 10 billion forints.