Davidoff Opens New Camacho Factory

Davidoff Opens New Camacho Factory
The site of the new Camacho Factory sits on almost 450,000 square feet of land purchased by Davidoff in 2015.

Davidoff's new cigar factory in Honduras is open for business. Named Diadema Cigars de Honduras, S.A., the new factory replaces Davidoff's AgroIndustrias Laepe S.A., colloquially known as the "Camacho Factory." Davidoff says it constructed the new building due to the strong growth of the Camacho brand.

Construction was first announced in early 2015 alongside the purchase of over 150 hectares (about 370 acres) of fertile land in Nicaragua and Honduras for tobacco farming. The company announced the official inauguration of the factory this week.

"I am proud to officially inaugurate our new factory. It is not only a milestone in the history of our company, but also reflects our global ‘crop-to-shop' philosophy with this extension of the vertical integration of the business," said Hans-Kristian Hoejsgaard, chief executive officer of Oettinger Davidoff AG. "Our investments mirror the strong growth on Camacho over the past five years, which saw its global sales double, as well as the needed production capacity to continue expanding Camacho globally. Furthermore, I am particularly glad that we are able to make a substantial contribution to Honduras' economic and social development by employing over 500 people in Danlí."

Rollers inside Diadema Cigars de Honduras, S.A.
Rollers inside Diadema Cigars de Honduras, S.A.

The site of the new Camacho Factory sits on almost 450,000 square feet of land purchased by Davidoff in 2015. The factory itself measures about 118,403 square feet, and was designed by Honduran architect Gonzalo Núñez Díaz. Davidoff says the factory boasts 125 pairs of rollers, multiple production halls, cold rooms, loading and unloading zones, a guesthouse and a refectory for employees.

Though the official opening was this week, the factory has been operational for a few months. Three different box-pressed lines—Camacho Connecticut BXP, Corojo BXP and Ecuador BXP—arrived at retailers mid-February.

One of Davidoff's Honduran curing barns.
One of Davidoff's Honduran curing barns.

In addition to producing the majority of the Camacho portfolio, Diadema Cigars de Honduras also makes cigars such as Baccarat, La Fontana, National Brand, LegendArio and other contract brands. Davidoff says the old AgroIndustrias Laepe factory is no longer in use, and the company intends to divest it.

Diadema Cigars de Honduras, S.A. is located near the Pan-American Highway, less than half a mile from the company's existing box factory.