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.