JTI wants PH to be its regional production hub
Its buyout of Mighty Corp. is more than just a bailout.
Japan Tobacco Inc. (JTI) said it will continue to ramp up investments in the Philippines following its acquisition of the embattled Mighty.
JT Group president Mitsuomi Koizumi signed a letter of intent with Finance Secretary Carlos Dominguez III, pledging support to increased tax collections while assigning Manila as its regional hub for Southeast Asia.
JTI bought Mighty in 2017 for P46.8 billion, helping the Bulacan-based cigarette producer to settle its tax liabilities to the Philippine government.
“JT Group enthusiastically supports DOF in its tax collection effectiveness program, and enthusiastically supports the realization of DOF goals to enhance the Philippines’ revenue base to bring about inclusive growth,” the letter read.
“The reason for the investment is two-fold: The transaction enables the JT Group to consolidate its business foundation through expanded distribution and strengthened brand portfolio by providing JT Group with more than a quarter of market share in a country with robust economic growth and the transaction allows the JT Group to enhance its business base in the ASEAN region with the Philippines serving as its regional hub.”
JT Group is the biggest cigarette firm in Japan.