Oettinger Davidoff said on Friday that it had acquired farmland in Nicaragua’s Condega region and in the Jamastran valley of Honduras.
The company said too that it had acquired land for the purpose of building a new cigar factory in Danli, Honduras, because the growth in demand for Camacho and other Honduran brands had outgrown the capacity of its current factory, which will be divested.
“Our acquisition of over 150 ha of land in Condega, Nicaragua, and in Jamastran, Honduras, represents a further strengthening of our crop-to-shop philosophy, which is an anchor of our global strategy,” said CEO and board member Hans-Kristian Hoejsgaard.
“I am equally delighted that a splendid new Camacho (Agroindustrias Laepe) factory designed by Honduran architect Gonzalo Nunez Diaz and including expansive visitor accommodation will underpin the growth trajectory of the Camacho, Room101 and Baccarat brands.”
Meanwhile, Javier Plantada, senior vice president global production, said he was “particularly delighted” with the quality of the farmland the company had been able to acquire. The land would not only provide tobacco of “top notch” quality, but would allow the pursuit of an innovation agenda and experimentation with new and existing seeds.
The plot of land for the new factory in Danli covers almost 450,000 square feet (41,000 m2). The factory will, in phase 1, cover more than 185,000 square feet (17,300 m2), reflecting the 60 percent growth in production output the company has had in the past three years.
“We simply outgrew our Agroindustrias Laepe facilities,” Plantada said.