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Negotiations with BAT

10 Sep 2020. The government of Croatia is in talks with British American Tobacco (BAT) after the company revealed it might move its tobacco factory to another country, reports SeeNews.

BAT currently has a tobacco factory in Kanfanar on the Istrian peninsula but had previously revealed plans to move it to another country. BAT took over the cigarette factory in 2015 and according to the Croatian prime minister Andrej Plenkovic signed a contract to stay in the country for at least five years. The factory in Kanfanar produces up to 12 billion cigarettes per year and has a maximum production capacity of 20 billion units, according to SeeNews. Moving the factory to another country would leave the region without one of its industrial symbols and cost around 500 employees their jobs, Glas Istre reported back in June.

The Croatian government has now entered into negotiation talks with BAT to try with Plenkovic positive regarding the outcome.

"We are holding talks, I am sure that we will reach a quality agreement that will enable them to stay in Croatia," he said in a press release on Tuesday.