Underground factory making counterfeit cigarettes raided in Fujian

A FACTORY making counterfeit cigarettes, hidden deep underground in southeast China's Fujian Province, was raided by the authorities, Xinhua news agency reported yesterday.

The factory was more than 6 meters beneath the ground in Yunxiao County. It had a storehouse of 20 square meters and a complete production line covering the whole cigarette manufacturing process.

The raid last month was led by the Ministry of Public Security and tobacco authorities. Fake brands discovered included Hongtashan and Double Happiness.

Making fake cigarettes is a lucrative business. Production machinery costs 250,000 yuan (US$38,050) and can churn out 20,000 cartons of fake cigarettes a day. Producers can recover the initial investment in just six weeks, Xinhua reported.

By the time the joint investigation team from the ministry and Fujian Tobacco Monopoly Bureau reached the factory in the recent raid, workers there had already fled.

The production of fake cigarettes in Yunxiao County began in 1993 and grew rapidly. There were complete and professional manufacturing lines in almost every village.

In 1997, when the illegal industry was at its peak, a total of 2.5 million cartons of counterfeit cigarettes were produced in the county every year, among which 80 percent were Yunnan brands. The local tobacco industry was badly hit by the influx of fake cigarettes on to the market, Xinhua reported.

Following a concerted crackdown on the industry from around 1999, the business went underground to avoid raids.

Typically, the entrance to an underground workshop is hidden beneath a gas stove or toilet. Villagers have built houses with walls and floors that can be removed, revealing a path to the factory.

The local government no longer considers such houses to be residential buildings. Once they are discovered, the buildings will be torn down.