Tag: croatia

BAT Invests in Croatia

Photo: burnel11
BAT recently inaugurated a HRK600 million ($82 million) production line for tobacco products at its Kanfanar factory in Croatia, reports Seenews.
In May, 2021, BAT revealed it would be manufacturing heated-tobacco products at its Kanfanar facility.
The investment has created 70 new jobs, and it’s expected to generate additional employment as production increases. Nearly 80 percent of the products manufactured on the new line are destined for export, according to BAT.
The Kanfanar factory uses 100 percent renewable energy and recycles all of its wastewater.
BAT said it plans to invest HRK22 million in environmental, social and governance activities at its Kanfanar facility as part of its efforts to become carbon neutral by 2030.
The inauguration of the new production line follows the opening last week of a new BAT logistics and distribution center in Pitomaca, Croatia. It will collect leaf tobacco from 26 countries and supply BAT factories in Augustow, Poland; Bayreuth, Germany; and Pecs, Hungary.
August 2, 2022
BAT to Upgrade Kanfanar Factory

Photo: burnel11
British American Tobacco is investing more than €80 million ($87 million) to upgrade its cigarette factory in Kanfanar, Croatia, to make new categories of tobacco products, reports SeeNews, citing Croatian prime minister Andrej Plenkovic.
BAT acquired the cigarette factory on the Istria peninsula in 2015 when it took over Tvornica Duhana Rovinj for more than €500 million. Under the deal, BAT was obliged to maintain production at the factory in Kanfanar for at least five years.
In September 2020, Plenkovic said the government was in talks with BAT on the company’s plans to relocate production from the factory to another country, following media reports that BAT might leave due to worsened business conditions in Croatia.
In May 2021, BAT said it would start producing heated tobacco products in Kanfanar.
April 8, 2022
New Tobacco Producers’ Association in Croatia

Photo: Branex
Industry stakeholders have formed a new tobacco producers’ association in Croatia, reports Total Croatia News.
The new association, called Tabacum, aims to provide members with better and safer conditions for tobacco production. To date, 57 Croatian tobacco producers, farming about 667 hectares of tobacco in the Podravina and Slavonia regions, have joined the new group.
“We want a secure future for our investments and our work in production,” said Mihael Colak, president of Tabacum. He noted that Tabacum will promote more intensive dialogue with the Ministry of Agriculture, the Croatian Chamber of Commerce, the Croatian Chamber of Agriculture, and it will aim for a more stable and better situation for tobacco producers on the Croatian market.
“Given that tobacco is one of the most profitable agricultural crops in all of Croatia, where the annual value of production exceeds 100 million kuna [$15.85 million], we believe that in our efforts, we will be supported by counties in which tobacco is primarily produced,” said Colak. “We’re convinced that the further strengthening of production is in the interest of all Croatian tobacco producers.”
July 1, 2021
BAT to Produce HNB Products in Croatia

Photo: burnel11
British American Tobacco (BAT) will invest HRK200 million ($32.07 million) to produce heated-tobacco products (HTPs) at its factory in Kanfanar, Croatia, reports Total Croatia News.
The multinational revealed its plans during a May 12 visit to its facility by Prime Minister Andrej Plenkovic.
“By expanding production in Kanfanar and opening a hub in Rijeka, we are continuing with BAT’s significant investments in Croatia,” said BAT Adria director Zvonko Kolobara.
“With the introduction of production lines for new product categories, Croatia is additionally strengthening its position on the global map of production sites in the tobacco industry. We are continuing to expand our selection for consumers in Croatia.”
The increased capacity in Kanfanar will help BAT meet growing demand for HTPs in Europe and northern Africa.
Plenkovic expressed satisfaction at BAT’s continued investments in Kanfanar.
“The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy,” he said.
“The company employs 1,600 people, and another 800 cooperate closely with BAT and make a living that way. The investment plans have been coordinated with their headquarters in London, and all the employees at the factory will be satisfied while the entire economy of Istria County will benefit from BAT’s operations.”
The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy.
Andrej Plenkovic, prime minister, Croatia
In June 2020, BAT suggested it might relocate its Kanfanar factory to another country due to unfavorable business conditions. The government then embarked on a campaign to keep the multinational in Croatia.
Plenkovic stressed that the new investment reflected Croatia’s good business climate, not government pressure.
May 13, 2021
Star Agritech Eyes Agroduhan

Photo: SAI
Star Agritech International (SAI) has expressed interest in the potential privatization of Agroduhan Slatina in Croatia.
In a letter to the country’s Restructuring and Sales Center, SAI proposes to expand the volume and varieties of tobacco grown in Croatia, reactivate the reconstituted tobacco plant in Agroduhan and base the headquarters of its European operations in Croatia by moving its current operations from Belgium to Agroduhan.
As part of its financial consideration, SAI said it would assume responsibility for the private sector bank loans that Agroduhan has contracted with Post bank of Croatia.
“Using our rich experience in the tobacco industry, with the aim of growing the business using new technologies, we believe this investment would yield positive benefits,” SAI wrote in its letter.
“With this proposal, we intend to achieve leaf production of at least 3 million kilos minimum per annum in Croatia. This program will increase the number of employees required at the Agroduhan factory as well as at the farm level.”
In addition to creating employment, the proposal would increase economic activity and generate substantial export revenues from the sale of larger quantities of tobacco and recon, according to SAI.
SAI CEO Iqbal Lambat
SAI was established by the Lambat family in 2008 with the mission of providing full tobacco raw materials supply to privately owned tobacco product manufacturers as well as government tobacco monopolies. The company now operates in more than 40 countries. The firm also owns and operates two recon factories—a slurry type recon factory in Indonesia and a nano fiber recon factory in Brazil.
In addition, SAI has started investment programs for a CRES factory in Cambodia and a second one in Indonesia.
November 13, 2020
Prime Minister asks BAT to Stay in Croatia

Photo: TDR
The government of Croatia is trying to convince British American Tobacco (BAT) to stay in Kanfanar, reports SeeNews. In June, reports surfaced that the company might relocate its Croatian factory to another country.
“We are holding talks; I am sure that we will reach a quality agreement that will enable them to stay in Croatia,” Prime Minister Andrej Plenkovic said in a press release on Tuesday.
BAT acquired the cigarette factory in 2015 when it acquired Tvornica Duhana Rovinj. At the time of its entry into Croatia, BAT signed a deal to stay in the country at least five years, according to Plenkovic. In 2018, BAT announced a €40 million investment in its Kanfanar facility.
The factory in Kanfanar currently produces 12 billion cigarettes per year. Its production capacity is 20 billion units.
In June, Glas Istre reported that some 500 employees could lose their jobs if the tobacco giant moved its Kanfanar production abroad.
September 10, 2020
BAT May Move Rovinj Factory Out of Croatia

Photo: TDR
British American Tobacco (BAT) might relocate its Kanfanar tobacco factory in Croatia to another country, Croatian media reported.
A move could cause 500 employees to lose their jobs and would leave the Istrian peninsula without one of its industrial symbols.
The Kanfanar factory produces some 12 billion cigarettes per year. Its annual production capacity is 20 billion units.
BAT acquired the cigarette factory in 2015 when it took over local tobacco producer Tvornica Duhana Rovinj.
June 18, 2020
BAT investing in Croatia

Photo: TDR
British American Tobacco has said it will invest €40 million in its factory at Kanfanar, Croatia, this year, according to a story in The Total Croatia News, quoting a company spokesperson.
In the two years since taking over the Tvornica Duhana Rovinj (TDR) tobacco factory, BAT’s Croatian team had made major progress, strongly positioning TDR within the BAT system, said Antal Bekefi, BAT’s new director for its Adria region.
In October, Adria expanded its area of operation, which now covers, apart from Slovenia, Croatia, and Bosnia and Herzegovina, the markets of Serbia, Montenegro, Macedonia, Albania and Kosovo.
Croatia News said that, together with the Bulgarian and Romanian markets, the Adria region was becoming a part of BAT’s new organizational area in South and Central Europe.
BAT is one of the biggest private investors and exporters in Croatia, with 80 percent of its Kanfanar production being exported.
The Croatian sector of BAT’s Adria region employs 1,650 workers.
January 24, 2018