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British American Tobacco could move cigarette production from Hungary

British American Tobacco (BAT) could move cigarette production from its base in Pécs (170 km southwest of Budapest) to other factories within the group, the companyʼs local unit, BAT Pécsi Dohánygyár, told state news wire MTI.

The measure, part of a proposed restructuring of production in Pécs, is expected to impact headcount, but details are still being negotiated with the Workersʼ Council and the union.

At the same time, BAT Pécsi Dohánygyár could add loose-leaf tobacco to its product palette and expand production of nicotine pouches to make it the biggest producer of the product in the BAT group.

Increasing production of nicotine pouches, which contain no tobacco, fits well with BATʼs strategy to offer consumers a broader selection of "potentially less harmful products", BAT Pécsi Dohánygyár said.

BAT Pécsi Dohánygyár completed a HUF 7.5 billion nicotine pouch plant a year ago, raising headcount in Pécs by 100. Next year, production volume at the plant is expected to increase by a factor of 3.5.

BAT Pécsi Dohánygyár had net revenue of HUF 151.2 bln last year. It employs more than 900 people, including 850 at the base in Pécs.