BAT Bangladesh plans to invest BDT1.5 billion ($13.6 million) in its Savar factory site in order to scale up productivity to meet growing demand, according to The Business Post.
The board of directors approved the decision at its Sept. 24 board meeting.
The investment will be generated from internal sources and bank financing based on the company’s cash flow, according to the Dhaka Stock Exchange disclosure.
BAT Bangladesh is constructing a bonded warehouse for storage of wrapping material, leaf and finished goods, according to the disclosure. The company also invested in the electrical, fire detection and protection systems, air conditioning and ventilation systems, IT systems and security systems as well as construction of site ancillary facilities for employee well-being and factory services, the construction of a reinforced cement concrete road and creation of an underground drainage system.
Earlier this year, the company invested in the Savar factory to create contingency capacity and take advantage of upcoming export opportunities.
BAT Bangladesh is headquartered in Dhaka and has cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.