Over the next five years, British American Tobacco (NYSE:BTI) plans to invest heartily in tobacco heating products, according to emerging-europe.com.
“The significant investment in our factory in Romania is testament to our commitment to offer smokers a wider range of tobacco and nicotine products – with a particular focus on potentially reduced-risk alternatives to smoking – in an increasing amount of countries,” Tadeu Marroco, BTI’s regional director for Europe and North Africa, was quoted as saying.
BTI announced aspirations to invest more than $940 million (U.S. dollars) into the manufacturing plant in Ploiesti, Poland, expanding current revenue streams and creating 200 additional jobs. The expansion will serve as a foundation for retailing BTI’s tobacco heating products across Europe, emerging-europe.com reported.
The manufacturing facility launched its product, glo, last December to 18 major cities in Romania and BATS reportedly collected more than 25,000 customers and sold millions of tobacco sticks (Neostiks).
Part of the investment will include the creation of a 7,000-square-meter hall, which will be focused on manufacturing Neostiks. BTI anticipates dominating the European market for Neostiks, according to sources.
“We have a long-held ambition,” said Marroco said.
BTI, which ended last week with a market cap of approximately $120.5 billion, appears to remain aggressive with its international industry investments, specializing in reduced-risk merchandise. E-cigarettes, tobacco heating devices, and oral tobacco are three spaces BTI will continue to expand, Marroco said.
“This ambition has seen us launch vaping products and tobacco heating devices in 16 countries in the last five years,” Marroco said. “(We have) bold plans to increase our geographical footprint in the second half of 2018.”
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