The chronicle of Eger Tobacco Factory

The chosen company

The figures show profit before tax, approximately 45% of which remained at the company’s disposal. With this the necessary developments had to be carried out. Development costs over the four years averaged per year around HUF 100 million, that is less than the cost of one new, modern manufacturing or packaging machine. If we consider that the 29 machines operating in 1991 could have been replaced with 20 new, larger capacity machines, it is clear that this would have taken the factory 20 years of continuous investment, presupposing that the profits, prices, and the exchange ratio remained the same. The foreign exchange required to cover the cost of machinery imported from the Western countries would have to be matched by exports to these countries. In order to meet these demands, between 1987 and 1991 the factory’s exporting activities were strengthened.

Exports

The leap apparent in exports in 1990 was due to the fact that Philip Morris assisted the company in exporting 205 million Agria cigarettes to the Western world. Domestic operations undertaken to replace imported materials were also broadened, in excess of HUF 50 million per year.

However, even these excellent results did not allow a quantum leap in factory development, although major investments were realized. Between 1987 and 1989 the four-storey filter manufac-