This investment, which will be spread over the the next five years, is expected to generate approximately 200 new jobs, and will go towards building a new manufacturing hall for BAT’s Neosticks. This will result in the creation of an additional 7,000 sq m of production space which will turn this factory into the sole supplier of glo Neostiks across Europe.
“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,” he added.
Focusing on revenue from cigarette alternatives
Last September, BAT announced major changes in its management structure, in order to incorporate vaping products in its core business. “Now that we have built a successful NGP (next generation products) business which is poised for substantial growth, we will be fully integrating NGP to leverage the scale and expertise of the whole group to drive growth in an area that is fast becoming a key part of our mainstream business,” said the tobacco company at the time.
The following month, the owner of Lucky Strike, Pall Mall and Camel had acknowledged that as people are becoming more conscious about the dangers of smoking, its traditional business is under pressure. Therefore its new business strategy includes increasing revenue from its safer alternatives by £5 billion, to an astounding $6.6 billion, by 2022.
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