Socotab, established in Antwerp, Belgium in 1923, has been active in Macedonia since 1951 and is the local leader in the tobacco sector. The company launched processing operations in Macedonia in the 1990s when it acquired plants in Bitola and Veles, and 2010 it opened a new modern plant in Dragozhani, outside of Bitola in order to meet the evolving standards of the export market. The company exports around 90% of its production to Europe, North America and other countries, with around 60% going to European markets.
General Manager Giovanni Beghi says, “We have invested around €30 million here, and Socotab at the time was among the biggest industrial investors in Macedonia.” He adds that Socotab chose Dragozhani for its new 40,000 sq m facility since the area was near the tobacco production, offered a suitable single large plot of land and had access to skilled human resources.
Socotab Macedonia is a limited liability company owned by Socotab Frana in Geneva, the group’s headquarters. In turn, Socotab is partnered with Universal Leaf Tobacco, one of the world’s leading private sector leaf tobacco dealers. The Macedonia operation employs around 140 permanent workers and has annual sales of approximately €40 million. Giovanni Beghi remains positive about the company’s future prospects.
Serving Blue Chip customers
The company produces a full range of grades from the varieties Prilep and Jaka. “Our top grades are recognized as being world-class aromatic tobacco grades and are used in many of the world’s top-selling cigarette brands,” Giovanni Beghi explains. Defining Socotab Macedonia’s competitive edge, he adds, “We have consistently been delivering quality tobacco to all our customers for many years and have built up a reputation for excellence, flexibility and reliability. Our customers that make up most of our clientele include most of the major cigarette manufacturers in the world.” Macedonia produces on average about 24 thousand tons of oriental tobacco per year and Socotab handles the largest market share in the country.
Macedonia offers excellent investment potential, according to Giovanni Beghi. He says, “There are not too many countries like Macedonia where investors can benefit from a stable legal framework, a business-friendly environment, a skilled and effective labour market and good support from the government, all within short distances from most of Europe’s major capitals.”
Like all of the factories in the Socotab group, Socotab Macedonia aims to provide a safe, clean and good work environment for its employees, and part of that is reflected in the fact that it is ISO 9001 (Quality Management System) certified. Additionally, Socotab employs energy-conservation measures wherever it can, and promotes ecologically-friendly initiatives. Socotab also contributes to various community-service projects in Macedonia. Giovanni Beghi points out, “We will continue to support all our farmers in Macedonia, and as long as our customers continue to want Macedonian tobacco, together with our farming partners, we will be there to deliver it to them.”
