Bangladesh Supreme Court Rejects Lease Appeal, British American Tobacco to Close Dhaka Factory

Jun.23

British American Tobacco Bangladesh (BAT) will relocate its headquarters from Mohakhali to Ashulia in mid-2025 after the Supreme Court rejected its appeal to extend the Dhaka camp land lease. The move includes the closure of the 61-year-old Dhaka factory. BAT plans a smooth transition and reported a strong Q1 2025 performance of BDT 95.97 billion ($800 million).

Key Points:

·The Supreme Court's final ruling mandates that the company must vacate the Mohakali site leased since 1964 and shut down its factory in Dhaka.

· However, the Savar and two other factories will continue operating, generating a profit of 95.97 billion taka (8 billion USD) in the first quarter.

·The company has promised to minimize the impact of relocation, which environmental organizations have long been calling for. This decision is seen as a victory for the environmental groups.

According to a report from The Dhaka Tribune on June 19th, British American Tobacco Bangladesh (BAT) will relocate its registered office from Mohakhali to Ashulia in mid-July 2025. This decision comes after the Supreme Court rejected the company's appeal to extend the lease of their Mohakhali office space. BAT must now vacate the premises they have been renting from the Dhaka Cantonment Board since 1964.

The relocation also involves the closing of the British American Tobacco factory in Dhaka, but its factories in Savar, Manikganj, and Kushtia will continue to operate. A spokesperson acknowledged that this may have an impact, but emphasized that preparations have been made to minimize the impact and protect shareholder interests. The British American Tobacco Bangladesh company's profit for the first quarter of 2025 was 95.97 billion Taka ($800 million).

The company had previously leased the factory for a period of 30 years, with the option to extend up to 90 years. British American Tobacco Company applied for a final renewal, but it was rejected by the board of directors, who then initiated legal proceedings. Environmental organizations have long been calling for the relocation of the factory citing pollution problems.

References:

[1] BAT Bangladesh Forced to Relocate Headquarters

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