Company History


The original factory in Limbe - 1950

Limbe Leaf Tobacco Company (LLTC) was incorporated and registered in Malawi in 1962 by Universal Leaf Tobacco Company of the United States of America (USA). This company was formed to take over and carry on the business formally operated by R.W. Noakes Limited and the Lytton Tobacco Company, both subsidiaries of Rhodesian companies, which were purchased outright by the Universal Leaf Tobacco Company in 1953.

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 (Nyasaland) Limited.

LLTC enjoyed a small but viable tobacco dealer business. However, in 1967, following the trade embargo against Rhodesia , there was a sharp expansion of the company's activities. Overseas buyers who were precluded from the Rhodesian market came to Malawi for some of their purchases, particularly Flue-Cured tobacco and other varieties. At the same time, Zambian tobacco, which was formally processed in Rhodesia, was being diverted to Malawi for processing and packing.

 

Further development to cope with new demands - 1967

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 Malawi for the first time. At that time, the company's processing facilities had a capacity to handle up to 35 million pounds of tobacco annually, exceeding the processing requirements. However, owing to the concentrated efforts made by Malawi which led to rapid increase in production of Flue-Cured and Burley varieties, it did not take long before these facilities were fully utilised.

 


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 Lilongwe that was initially used for handling Oriental tobacco. This small factory was the forerunner to the present new factory complex whose plans were facilitated by Malawi’s former president Dr. H. Kamuzu Banda's decision to build another auction floor in Lilongwe, where Flue-Cured tobacco produced in the Central and Northern regions and Malawi’s Burley crop were to be sold beginning with the season of 1979.














Inside view of the new factory - 1967


 Modern processing machinery in the factory extension - 1967

1980's Onwards

The Lilongwe processing factory was completed in 1980 and had modern and sophisticated equipment capable of meeting the higher standards that our customers demanded. The new factory brought additional processing capacity of 25 million kilos to the existing 16 million kilos capacity at the Limbe facility.

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 Malawi and return the production of Flue Cured back to independent producers.

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.

Installation of Proctor Redryer - 1978

Lilongwe Factory threshing line - 2008

 

2007 to 2008

In 2007 Malawi produced an unexpectedly small burley crop of only 89 million kilos. With the world stocks at an all time low this put strain on the manufactures inventories. The prices for burley in 2007 firmed up to a 10 year high of 175 us cents per kilo.

 

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 Malawi stake holders which equated to a minimum price grade for grade matrix. This COP model will be a reassessed on annual basis.

 

Limbe Leaf automated the central weighing conveyer network taking the final packed units in sequence to dry storage.

 

 
An Overhead conveyor
   

2009 to 2010

Another record burley crop was produced in Malawi of 208 million kilograms.

 

 
Lilongwe Factory - 2009
   

© 2010 Limbe Leaf Tobacco Company
Kanengo, Lilongwe, Malawi