News; Nov 28, 2003 CET

Digital fireworks display crowns inaugural celebration

“A totally new workplace is always a pleasure for a municipality.”

These were the words of a visibly satisfied Leif Johansson, Chairman of Kung㫶 Municipal Executive Board, when he officiated at the formal inauguration of Swedish Match’s new plant in the Kung㫶 industrial park on Thursday, September 18.

Some 200 guests had gathered on this sunny September day to take part in the festive occasion. Dressed in protective headgear and overalls, with plastic oversocks on their feet, and after the obligatory hand-washing, they were guided around in groups in the new supermodern facility, until in due course Leif Johansson pressed the start button for the digital inaugural fireworks display.

Leif Johansson reminded those present that Swedish Match has certainly been a familiar guest for some time as a result of the yacht-racing series held in nearby Marstrand.

“But now we are on the threshold of a new relationship, and it is a great pleasure to be able to include this contribution to the heterogeneous business community in our municipality,” he said.

Swedish Match CEO Lennart Sund謠related that it was a major decision that the Board of Directors took nearly three years ago when they gave the go-ahead for construction.

“But since then, the market has confirmed that our forecasts were correct and that a future expansion of production capacity was indeed necessary,” he noted.

“The new plant realizes our vision of creating a snus product free from health risks, and is a key factor in achieving our objective of producing the world’s best snus. It is also a very attractive plant,” added Lennart Sund謮

The main driving force behind Swedish Match’s snus vision is Stefan Gelkner, President of the North Europe Division.

However, he reminded the assembled guests that the first portion-packed snus was introduced no less than 30 years ago, under the name “Smokeless.”

“It was a total flop,” noted Gelkner wryly.

Nevertheless, the basic concept turned out to be sound, and after a few years portion packed snus returned under the Tre Ankare brand name. And as everyone knows, the success story has simply continued since then. Accordingly, it was a very satisfied Stefan Gelkner who could point to yet another success for his vision:

“A plant designed by us, unique in the world, and built in record time to produce the second generation of snus - our White products.

On January 11, 2001, the ground was broken for Swedish Match’s new snus plant in Kung㫶, Sweden. The plant was formally inaugurated on September 18, 2003.

The snus plant in Kung㫶 is one of the largest industrial projects in western Sweden so far this century. The total investment in land, buildings, equipment, etc. amounts to approximately 600 MSEK.

The plant has a floor area of approximately 23,000 square meters, distributed over seven floors.

Snus production at the Kung㫶 plant began in March 2003. In full operation, the plant will employ a workforce of 120 persons and have a production capacity of some 120 million cans per year (the Gothenburg plant produces 210 million cans).

Production at the Kung㫶 plant is devoted exclusively to a new type of portionpacked snus, NYPS, using a technology developed and patented by Swedish Match. NYPS differs from traditional portion-packed snus in several ways. For example, it is moistened using a new process designed to ensure that it runs less and has a more pronounced flavor. Some examples of NYPS products are General White Portion and Grov White Portion.

The plant’s construction totally conforms to GOTHIATEK®, Swedish Match’s unique production standard.

The work environment and hygiene are two of the cornerstones in the design of the plant. Since the production of Swedish snus falls under the Food Act, the entire plant is regarded as a hygiene zone. The premises are bright and clean, and the noise level is exceptionally low.