But Increased Smuggling Is Seen Cushioning Impact; Firm's Stake Substantial
Jump to full article: The Wall Street Journal Interactive Edition, 1980-01-15
Intro: The Iranian government canceled an agreement with R.J. Reynolds
Industries the, to make Winston cigarets in Iran. but increased cigaret snuggling there is
expected to cushion the sales impact.
Iran canceled the manufacturing license as part of its effort to reduce its dependence on foreign
business.
According to published reports. Iran has estimated that its 1977-78 Winston production totaled
more than 10 million cigarets.
R.J. Reynolds's stake in Iran is substantial. The tobacco company's 1978 Iranian sales totaled
about 195 million and its Ira man tobacco assets, as of Dec. 31. 1978. toWed about $72.8
million. According to its most recent 10-K filing with the Securities and Exchange Commission.
sales in 1978 from all of the company's operations, including transportation and energy. totaled
$258 million and related assets totaled $82 million.
Since the Iranian revolution, however. Iran has piled up a substantial debt to R.J. Reynolds.
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