British American Tobacco (BAT), the biggest tobacco group in Romania, will invest EUR 800 million at its factory in Ploiesti in the next five years, the company announced on Monday.

The investment will generate 200 new jobs in the first phase and will allow the group to expand its tobacco heating product – glo – in Europe starting the second half of 2018. BAT will build a new 7,000-sqm production facility at its Ploiesti factory, where it will produce the tobacco consumables for the glo devices, called Neostik. The Romanian factory will be the only supplier of Neostiks for the European market.

“The EUR 800 million that will be invested at Ploiesti in the next five years are a proof of our commitment to Romania. Currently, 60% of the products made in Romania go to export in 45 other countries and the share will increase to 70% due to the new investments. We want to continue investing in Romania and hope the government will offer the necessary predictability,” said Ram Addanki, BAT Area Director for Central and Southern Europe.

BAT has invested some EUR 310 million in its Ploiesti factory, where it has about 800 employees. The new investments will turn the Ploiesti factory into one of the top 5 factories the group has worldwide.

Philip Morris International, one of BAT’s main competitors, also announced EUR 490 million investments at its factory in Otopeni in July last year. Philip Morris also started producing tobacco consumables for heating devices in Romania.

editor@romania-insider.com

(Photo courtesy of the company)