JTI Explores New Factory Investment in Romania, Reportedly Worth 70 Million Euros

Key Points:

·Investment Scale: The proposed project is valued at approximately 70 million euros and is reportedly part of JTI’s broader expansion strategy in Romania. 

·Factory Advantages: The new production site would be located in Ștefăneștii de Jos, near the intersection of Romania’s A0 and A3 highways. Covering an area of 60,000 square meters, the facility would be three times the size of JTI’s current factory. 

·Collaboration Background: The project is being developed in partnership with Belgian real estate group WDP, which is also planning to construct a 54,000-square-meter logistics distribution center by 2026. 

·Market Impact: Over 75% of JTI’s Romanian production is currently exported to more than 70 countries. The company’s product portfolio includes international brands such as Winston, Camel, Sobranie, and Ploom.

According to Romanian media reports originally published by Profit.ro, JTI is preparing to relocate its production from its existing Pipera facility to a significantly larger and more modern factory. The existing facility, opened in 1994, was the first international tobacco production site in Romania but no longer meets current technological and spatial standards. 

JTI’s new plant would be built on an 18.3-hectare plot and include dedicated zones for production, packaging, raw material storage, finished goods warehousing, and technical equipment. The facility is expected to reach an annual production capacity of 36 billion cigarettes. 

In response to media inquiries, Antonio Vencesla, Director of Corporate Affairs and Communications for JTI Romania, Moldova, and Bulgaria, stated: 

“We are currently exploring opportunities to invest in and build a new production facility in the outskirts of Bucharest. However, since the project is still in its early stages, we are unable to provide further information at this time.”

JTI employs around 1,500 people in Romania, operating across its headquarters, factory, technology center in Bucharest, and more than 30 local sales offices. The company also manages operations in Moldova and Bulgaria from Romania. 

In 2023, JTI’s operations in Romania through its JTI Trading and JTI Manufacturing entities surpassed 1.7 billion euros in revenue.

WDP, JTI’s real estate partner, owns a portfolio of industrial and logistics spaces in Romania valued at over 1.3 billion euros, holding an estimated 25% market share. 

This article is based on information reported by Romanian business media outlet Profit.ro. JTI has not issued an official press release regarding the investment but provided a statement confirming that the project is currently under consideration.