BAT ponders factory in the Philippines

British American Tobacco is considering putting up a factory in the Philippines within the next two years in a move that would involve an investment on top of the $200 million it has already committed to the country, according to a story in The Star.

“We will need a factory here at some point,” James Lafferty, BAT Philippines’ general manager, was quoted as saying. “We’re still studying the factory but it will be on top of the $200 million.”

Lafferty said the company was looking at various options, which included acquiring an existing factory and putting up a distribution site or a major manufacturing facility.

He said the factory could complement or even compete with BAT’s manufacturing plant in Malaysia.

The $200 million of investments is committed to a five-year program to beef up the company’s distribution and hire additional people, perhaps bringing staff levels to 300 by the end of this year.

Lafferty said that since the passage of the excise tax reform law this year, the industry’s new players, including BAT and Japan Tobacco, had strengthened their presence and introduced new brands.

“This is the beauty of free market,” he said.