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Universal Corporation (NYSE: UVV), headquartered in Richmond,
Virginia, was founded in 1918. The Company is the world's leading leaf tobacco merchant
and processor, based on volumes handled by its subsidiaries and affiliates, and
has operations in agri-products. Universal conducts business in more than 30 countries
and employs more than 24,000 permanent and seasonal workers.
Universal's business includes selecting, buying, shipping, processing, packing,
storing, and financing of leaf tobacco in tobacco growing countries for sale to,
or for the account of, manufacturers of tobacco products throughout the world. Universal
does not manufacture cigarettes or other consumer products. The Company's revenues
are derived from sales of processed tobacco and from fees and commissions for specific
services.
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INDUSTRY NEWS
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Statement Regarding Limbe Leaf Tobacco Company
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It is with regret and deep concern that we acknowledge that
two senior employees of our subsidiary, Limbe Leaf Tobacco Company Limited (LLTC),
have been deported from Malawi. We do not understand the reasons for these actions
and fear that there is some misunderstanding. We hope to resolve this apparent misunderstanding
as we believe LLTC is in the full accordance with the terms of the Memorandum of
Understanding (MOU) among the Malawi Government, the Malawi Tobacco Control Commission
(TCC), and our subsidiary, LLTC. This MOU sets minimum prices per grade of tobacco
(the grades are determined by the TCC) for the current purchasing season. LLTC has
paid these minimum prices, or more, for its purchases of Malawi tobacco this season.
LLTC has not paid below the prices prescribed in the MOU. Furthermore the MOU expressly
excludes any requirement for LLTC to purchase any minimum or specific style or volume
of tobacco.
We recognize the symbiotic relationship between us and the farmer. As a tobacco
buying entity, we need the farmers’ production, and we are vitally interested in
their well being. For our business to remain viable, we must be able to sell the
tobacco in the world market at competitive prices. So the farmer has a vital interest
in our well being too. This partnership between the farmer and the buyer thus calls
for a business relationship that ensures the viability of the parties concerned
and long-term sustainability of the operations in the industry.
Universal Leaf Tobacco Company, Inc. operates in Malawi through LLTC, of which it
owns a 58% equity interest. Press Corporation, a publicly traded Malawi corporation,
owns the remaining 42% of LLTC. It is the intention of LLTC to continue to buy tobacco
in Malawi to meet the requirements of customers for Malawi tobacco. We are committed
to supporting sustainable and stable tobacco production in Malawi, and LLTC signed
the MOU in that spirit.
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P.O. Box 25099 :
Richmond, VA 23260 US :
804-359-9311
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