PMI and Universal in Polish processing agreement

Universal has reached an agreement whereby it will process the green leaf tobacco bought by Philip Morris in Poland.

Universal Corporation said yesterday that its subsidiary, Universal Leaf Tobacco Poland had entered into an agreement with Philip Morris Polska Tobacco (PMP), a subsidiary of Philip Morris International, to process green leaf tobaccos procured by PMP from its contracted grower base in Poland.

Previously, the processing of these tobaccos was handled directly by PMP.

The arrangement was said to reinforce both PMI’s and Universal’s strong, continuing commitment to Polish-grown leaf tobacco and the grower communities involved.

“We are pleased to be a part of this undertaking with one of our longstanding global business partners,” said George C. Freeman, III, chairman, president and CEO of Universal Corporation. “The strength, efficiency, and security of the leaf supply chain is vital to our success and to the success of our customers, and thus, we are committed to the sustainability of our grower communities.

“The supply chain in Poland will be enhanced for all stakeholders through improved processing efficiencies.”

The new arrangement was effective as of September 1.