|
|
|
|
||||||||||||
|
Company History |
|
|
||||||||||||
|
|
|
|||||||||||||
|
|
||||||||||||||
|
Limbe Leaf Tobacco Company
(LLTC) was incorporated and registered in
After incorporation,
LLTC retained the factory operations of Lytton Tobacco Company as a subsidiary of
Limbe Leaf, while completely taking over the dealing operations of R.W. Noakes (
LLTC enjoyed a small but viable tobacco dealer business. However, in 1967, following
the trade embargo against
|
|
|||||||||||||
|
|
|
|||||||||||||
|
||||||||||||||
|
|
|
|||||||||||||
|
1960's Onwards |
||||||||||||||
|
|
|
|||||||||||||
|
To cope with the growing demand from worldwide customers, the company was compelled to expand its packing and processing facilities. In 1969 negotiations were successfully concluded to purchase the then Edwards Goodwin, and Charles Downs factory on Partridge Avenue, Limbe, Malawi.
Immediately after the factory was acquired, some renovation work was undertaken
and new processing and packing equipment was bought making it possible to provide
a range of sophisticated services to customers. These services included tipping
and threshing, services which were being provided in
|
|
|||||||||||||
|
|
|
|||||||||||||
![]() Additional factory space for new machinery - 1967 |
|
|||||||||||||
|
|
|
|||||||||||||
|
1970's Onwards |
|
|||||||||||||
|
|
|
|||||||||||||
|
In 1972 the activities of the Company
were further strengthened when an arrangement was concluded with Mr. J.P. Stevens
Company. One of the benefits of the arrangement resulted in additional factory facilities
for LLTC. Following the expansion in the factory network, the Company was now not
only able to provide an extra range of processing and packing services, but in addition
to Flue-Cured and Burley also started handling Northern/Southern Dark-Fired, Sun/Air-Cured
and Oriental varieties.
Ranges of handling which encompassed
all methods applicable in the world included those in bundles, strips, loose leaves,
tip and threshing as well as other numerous types of special handling required by
the West Coast markets. Such special handling requirements also needed different
types of containers - bales, pine and gum cases, hogsheads, and cardboard cartons
- not to mention the many different flavourings required by the wide variety of
customers.
In 1975 Universal Leaf welcomed Press
(Holdings) Limited as partners in this great enterprise. We would like to pay tribute
to the valuable contributions Board members representing Press (Holdings) Limited
made in many spheres towards the progress of the Company and the understanding they
have brought during Board deliberations.
Owing to the tremendous potential of expansion in output of tobacco in the Central
and Northern Regions of Malawi, in 1974 the Company acquired land and a small factory
in
|
|
|||||||||||||
|
|
|
|||||||||||||
|
|
|
|||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
|
|||||||||||||
|
1980's Onwards |
||||||||||||||
|
|
||||||||||||||
|
The
However, the new factory which had two 48-inch five-stage threshing lines with linear separation feeding into one lamina drier was soon to be outgrown by a Burley crop that was increasing at a rigorous pace.
In 1982 the existing threshing lines
were upgraded by the installation of an additional set of 48-inch threshers in the
first stage. A new dimension in separation was added to the lines with modern counter
flow separators replacing the old linear separators. The rapid expansion of the
Malawi Burley crop continued to add pressure on the operations. More green and packed
storage warehousing had to be built. In 1985 the two existing threshing lines were separated into individual lines and a 12-foot super drier complimented with a new Fishburne press was installed. The factory now had the flexibility to pack separate grades and types by utilising two independent lines. |
|
|||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
|
|
|
|||||||||||
|
1990's Onwards |
|
|||||||||||||
|
The Burley crop continued to grow
and subsequent volumes purchased by the company engineered more changes. In 1991
the existing threshers were removed and replaced by two 96-inch multi-separator
five-stage counter flow lines. The result increased our throughput by 45% and reduced
the processing season to a standard 8 months.
In 1993 there was further need for
expansion as the company continued to increase its purchases from the ever-expanding
crop. More storage was built by expanding existing area into upper level storage.
A third line was installed. This line was a multi-separator five-stage threshing
line-a new concept in separation and design and was the first of its kind in the
Universal Group. The line added value through reduced noise levels. It was more
compact resulting in more available space, lower maintenance, and more efficient
in maximizing results. In 1995 the Malawi Burley crop surpassed the 100 million kilos mark and continued to expand. By 1998 the crop reached a volume of 133 million kilos. |
|
|||||||||||||
|
Early construction of Lilongwe factory - 1977 |
|
|||||||||||||
|
|
|
|
||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
2000 and onwards |
|
|||||||||||||
|
|
|
|||||||||||||
|
The Burley crop reached an all time
high of 151 million kilos. Mozambican expansion was equally successful and all production
in that country was being channeled into Limbe Leaf for processing. The pressure
to perform and compete increased and once again there was a need to increase factory
efficiencies and throughput.
A decision to replace the two counter flow lines was made. The success of the multi-separator configuration justified the installation of two state-of-the art 96-inch five-stage threshing lines with emphasis on early separation for the enhancement of yields and productivity. Building of additional storage facilities had to be considered annually to facilitate growth. |
||||||||||||||
|
|
||||||||||||||
![]() Aerial view of construction site - 1977 |
||||||||||||||
|
|
|
|||||||||||||
|
2002 to 2006 |
||||||||||||||
|
|
|
|||||||||||||
|
In 2002 we saw the need to increase
the production of the Malawi Flue-Cured crop, which had fallen to a mere 8.2 million
kilos. Customer support for this programme was encouraging and Limbe Leaf’s vision
was to ensure maintenance and increase of Flue-Cured production and to re-visit
the well-known customer base that we once enjoyed.
To this end, an Agronomy department
was established to ensure a well-managed plan by way of sponsorship of independent
commercial and smallholder growers as well as investment in our own controlled growing
programmes.
A major component of the Flue-Cured
expansion was a partnership with Press Agriculture through management and restructuring
of the well-known General Farming Company, Malawi’s largest producer of Flue-Cured
tobacco. It is encouraging to report that a reverse trend in Flue-Cured production
was evident. New developments included large investments on converted Press estates
and some independent estates where new and modern curing systems, mainly forced
air systems, were installed,.
In 2004 hectarages planted were dramatically
increased and with improved growing conditions 2 million kilos above the estimated
21 million kilos was achieved.
That year Legislation was passed barring
direct marketing of Flue Cured tobacco and that all tobacco should be sold over
the Auction Floors. This Legislation was in favour of the Auction Floors. The majority
of tobacco sales were direct sales conducted on silent auction, where dealers had
the sole right to purchase from their sponsored growers. This is a grading system
where predetermined prices per grade are agreed upon between the dealer and the
grower.
The 2005 growing season saw continued
effort and increased investment towards direct sponsorship and management control
of the flue cured crop.
Again in 2006 the crop’s total production
increased and a record crop of 30 million kilos was grown. The average price per
kilogram of $1.55 and poor yields in 2006 put the investment in Flue Cured farming
into question. Limbe Leaf decided to discontinue their investment in Flue Cured
farming in
This decision was taken in order for the Company to re-focus its efforts on its core business which is tobacco purchasing, processing and exporting. |
|
|||||||||||||
|
Lilongwe Factory threshing line - 2008 |
|
|||||||||||||
|
|
|
|||||||||||||
|
2007 to 2008 |
||||||||||||||
|
|
|
|||||||||||||
|
In 2007
Limbe Leaf commissioned two Procter super driers for lamina packing servicing lines 1 and 2. |
![]() Installing the Procter Driers - 2007 |
|||||||||||||
|
|
|
|||||||||||||
|
2008 to 2009 |
||||||||||||||
|
|
|
|||||||||||||
|
In 2008 we grew a record crop of 169 million kilograms which helped to ease the pressure on manufactures inventories.
The inception of a Cost of Production (COP) model for flue cured and burley was
agreed upon by all
Limbe Leaf automated the central weighing conveyer network
|
An Overhead conveyor |
|||||||||||||
|
|
|
|||||||||||||
|
2009 to 2010 |
||||||||||||||
|
|
|
|||||||||||||
|
Another record burley crop was produced in
|
![]() Lilongwe Factory - 2009 |
|||||||||||||
|
|
|
|
|
|||||||||||
|
|
|
|||||||||||||
|
|
© 2010 Limbe Leaf Tobacco Company Kanengo, |
|
||||||||||||