<span class="articleLocatio</span>n">(Reuters) - Some of the leading U.S. producers of electronic cigarettes are moving their manufacturing to the United States from China in response to growing concern about quality and the prospect of tighter federal regulations.
In recent weeks, some of the best-selling U.S. e-cigarette companies, including closely held Mistic and White Cloud, announced that they would move production to new, highly automated U.S. factories that would enable them to track ingredients and quality more closely. As a fringe benefit, they even expect costs to be lower than in China, the country that invented the battery-powered cartridges that produce a nicotine-laced inhalable vapor.
"People are concerned about quality," said Bonnie Herzog, a senior analyst at Wells Fargo Securities, who expects more manufacturing to shift to the United States.
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Interesting but logical twist I didn't see coming. I wonder how many others will follow suit and where it will leave Shenzhen. With 80%-odd of the global market using cigalikes this could leave a huge hole in China's ecig operations.
Also, given that Herbert Gilbert's US patent pre-dates Hon Lik's, it'll be interesting to see how this pans out legally for Imperial Tobacco.