Japan Tobacco to roll out e-cigarette next year

[September 23, 2016]  LONDON (Reuters) - Japan Tobacco is aiming to start rolling out its Ploom Tech tobacco-based e-cigarette in cities across Japan next year, a senior executive said on Friday, as it fights to catch up to larger rival Philip Morris.

Japan Tobacco, the world's third-largest tobacco company, has invested heavily in expanding its manufacturing capacity of tobacco capsules used with the Ploom Tech, after it hit supply constraints in March after a test launch in the southern city of Fukuoka.

The company will launch Ploom Tech in select major cities in early 2017, Kiyohide Hirowatari, head of tobacco business planning, said at an investor meeting on Friday in London. He said the company will have increased its capacity by four times by the end of this year and ten times by the end of next year.

Japan Tobacco, whose cigarettes include Benson & Hedges and Mevius, said its international tobacco business was well positioned to achieve its forecast for full-year growth of 11.4 percent in profit. It also expects growth of 8.1 percent in revenue and 2 percent in sales volume.

(Reporting by Martinne Geller; editing by Susan Thomas)

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