British American Tobacco has announced that it has won approval from the Chinese government to build a US$1.5 billion joint venture in China with a local partner, the first time a western cigarette producer enters the huge Chinese markets.

The British firm said that the green light comes after years of negotiations with the Chinese government and its Chinese partner is China Eastern Investments Corporation.

The factory, which would be the British firm's largest factory after completion in two years, will have a capacity of producing 100 billion cigarettes a year.

It said the factory would manufacture its traditional brands including State Express 555 and Kent.

(CRI July 17, 2004)