BAT May Step Up Pouch Production in Hungary

British American Tobacco may expand production of nicotine pouches at its factory in Pecs, Hungary, reports the Budapest Business Journal, citing the state news wire MTI. The move would make the Pecs tobacco factory the biggest producer of pouches in the BAT group.

Under the plan, Pecs’ cigarette manufacturing operations would be moved to other factories within the group.

Part of a proposed restructuring of production in Pecs, the measure is expected to impact headcount, but details are still being negotiated with the Workersʼ Council and the union.

Increasing production of nicotine pouches, which contain no tobacco, fits well with BATʼs strategy to offer consumers a broader selection of potentially less harmful products.

BAT completed a HUF7.5 billion ($24.61 million) nicotine pouch plant at Pecs a year ago, raising headcount at the site by 100. Next year, production volume at the plant is expected to increase by a factor of 3.5.

In 2019, BAT’s Pecs factory reported net revenue of HUF151.2 billion. The company employs more than 900 people in Hungary.