According to Hungarian media Infostart, on April 19, Hungarian Foreign Minister Péter Szijjártó announced that British American Tobacco plans to establish a smokeless product production center in the Hungarian city of Pécs. He stated that this investment will create 450 new job opportunities, estimated at 60 billion Hungarian forints (160 million USD), and will make Pécs one of the largest disposable investments in the country's history.
The project will also help achieve two major economic policy goals in Hungary. Firstly, as an export-oriented country, Hungary's economy heavily relies on exports, with over 80% of products produced here being sold in foreign markets. Secondly, British American Tobacco is the seventh largest investor in Hungary, providing 50,000 job opportunities for locals. According to the minister, Hungary's bilateral trade volume is expected to reach 6.5 billion euros (6.928 billion USD) by 2023.
The Regional Director for British American Tobacco in Europe, Usman Zahur, pointed out that the Pace factory could become one of the world's major production centers for smoke-free alternative products.
This significant investment will further enhance our long-term strategic focus on Hungary. By 2035, new product categories will account for 50% of our revenue. The production capacity of the new factories, particularly the Pécs facility, is crucial for us to achieve this goal.
British American Tobacco stated in a press release:
The new manufacturing center mainly produces nicotine pouches and herbal heating sticks, supplying the Hungarian and global markets.
The company will add 16 new production lines and also plans to build a new 7,500-square-meter manufacturing plant. In addition, smokeless tobacco and herbal heating sticks will be introduced as new product categories in the company's lineup.
The statement claims that British American Tobacco achieved sales revenue of £27.28 billion (US $33.7 billion) and adjusted operating profit of £12.46 billion (US $15.3 billion) globally in 2023, and employed over 46,000 staff.
British American Tobacco's subsidiary in Hungary, BAT Pécsi Dohánygyár Kft. (BAT PD Kft.), is the largest investor in the tobacco industry in Hungary, employing over 900 workers in its facilities located in Budapest and Pécs.
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