BAT to Extend Capacities with Development in Pécs

The tobacco factory BAT Pécsi Dohánygyár Ltd. invests EUR 150.7 million to add substantial capacities at its site in Pécs, S Hungary. The development will create 450 new jobs, according to a report by the Hungarian Investment Promotion Agency (HIPA).

British American Tobacco (BAT) has been present in Hungary since 1992, in three locations in the country. The company decided to implement a new investment to extend capacities at its plant in Pécs.

On the one hand, the company aims to establish two new production lines in value of EUR 63.8 million with the purpose of manufacturing herbal heated products. This will also mark a milestone for BAT’s Hungarian subsidiary as herbal products haven’t been part of its portfolio so far. Up to 80% of the goods will be exported.

In addition, 16 production lines will be installed in a brand-new hall of 7,500 square meters where nicotine patches will be made. Currently such patches are produced in 12 production lines, and now that capacity will surge significantly.

The investment that will result in the creation of 450 new jobs further strengthens the strategic importance of BAT’s site in Pécs.

BAT plans to have up to 50% of its revenues from new category products by 2035 to which both the above-mentioned nicotine patches and smokeless herbal products belong.