BAT says EUR 30 million to be invested in Kanfanar tobacco factory

Since its arrival in Croatia and the acquisition of the TDR tobacco factory, British American Tobacco (BAT) has continued with investments, this year it has invested EUR 20 million and plans to invest an additional EUR 30 million in the Kanfanar tobacco factory in the coming period, BAT Adria CEO Ram Addanki said.

TDR is an excellent acquisition, Addanki said, adding that BAT planned to continue investing in the expansion of the Kanfanar-based factory, in corporate growth as well as in the fight against black market tobacco sales.

He noted that BAT's share in the Croatian market was growing on a monthly basis and currently stood at 52.8%.

Addanki said that TDR had started exporting to new foreign markets such as Germany, Hungary, Greece and Bulgaria.

The black market accounts for 25% of all tobacco sales in Croatia, which is a huge loss for the state budget, he said.

The state budgets of Croatia and Bosnia and Herzegovina lose more than HRK 2 billion in revenues annually due to the illegal sale of more than 4.5 billion cigarettes and tobacco products in those two markets.

BAT bought TDR and other tobacco-related business units from Adris Group in mid-2015, at a price of slightly more than half a billion euros. The acquisition also included the factory in Kanfanar, which produces around 7.5 billion cigarettes a year, of which 60% is exported to foreign markets.

BAT is one of the biggest multinational tobacco companies, with more than 200 own brands. It employs more than 50,000 people and sells 663 billion cigarettes that are produced in 44 factories worldwide.

Last update: Thu, 22/09/2016 - 16:33

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