ArabFinance: Eastern Company (EAST) has decided to suspend production at its Muharram Bek Cigarette Factory in the meantime until future needs are calculated, according to a statement filed to the Egyptian Exchange (EGX).
This decision was made based on the availability of the finished-manufactured product due to the improvement of the work systems and higher production efficiency of machines over the past period, resulting in achieving surpluses in production.
As a result, the inventory has seen growth beyond the required level as per the companys policy that ranged from seven to 15 days.
It is worth noting that the production volume of the Muharram Bek factory accounts for 3% to 5% of Eastern Companys total production volume.
Eastern Company is an Egypt-based company, which is engaged in manufacturing tobacco products.
The companys product portfolio includes cigarettes, cigars, pipe tobacco, and molasses tobacco, as well as other related products such as cigarettes filter rods and homogenized tobacco.
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