British American Tobacco to Produce Smokeless Cigarettes Near Pécs, Entering the 21st Century
A notable development in the tobacco industry as British American Tobacco (BAT), a leading global player, has announced the establishment of a new manufacturing hub for smokeless products near Pécs, Hungary.
This significant investment, amounting to approximately 60 billion HUF (Hungarian Forints), is set to create 450 new jobs, heralding a major economic boost for the region.
During the announcement, Hungary's Minister of Foreign Affairs and Trade, Péter Szijjártó, highlighted the expansion of production capacity and the introduction of new products manufacturing in Hungary, positioning Pécs as a pivotal global production center for smokeless tobacco products. Currently, BAT employs nearly a thousand individuals in Hungary, and with this new venture, it is poised to further solidify its presence in the country.
The focus on smokeless products aligns with a broader trend within the tobacco industry towards offering alternatives to traditional smoking, reflecting changing consumer preferences and regulatory landscapes. Over 80% of the goods produced in the Pécs facility are intended for international markets, underscoring the global significance of this expansion. Additionally, the Pécs tobacco factory boasts a carbon-neutral certification, highlighting BAT's commitment to sustainable and environmentally friendly manufacturing practices.
Szijjártó also noted the substantial investment by British companies in Hungary, with UK firms now ranking as the seventh-largest investor group in the country, providing employment to over 50,000 individuals. Bilateral trade between Hungary and the UK reached a record 6.5 billion euros last year, indicating strong economic ties.
Usman Zahur, Central European Regional Director for British American Tobacco, emphasized the strategic role of the Pécs unit in BAT's global manufacturing network for smokeless alternatives. This investment is seen as a testament to the ongoing cooperation between Hungary and BAT, which spans over three decades. Zahur stressed the importance of increasing the company's manufacturing capacities, especially in Pécs, to achieve BAT's long-term goal of having 50% of its revenues generated from new category products by 2035.
This development not only underscores Hungary's strategic importance in BAT's future plans but also marks a significant milestone in the tobacco industry's evolution towards innovative, less harmful alternatives to smoking.