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.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
