British American Tobacco (BAT) is investing more than EUR 80 million to upgrade its cigarette factory in Kanfanar to make new categories of tobacco products, reports SeeNews.

Croatia welcomes the latest investment of BAT as it will make the country one of the most important location for the company, Croatian prime minister Andrej Plenkovic wrote on his Twitter profile after a visit to the factory on 7 April.
According to the report, BAT acquired the cigarette factory in Kanfanar in 2015 when it took over local tobacco company Tvornica Duhana Rovinj (TDR) for more than EUR 500 million. Under the takeover deal, BAT was obliged to maintain production at the factory in Kanfanar for at least five years.
In September 2020, Plenkovic said the government was in talks with BAT on the company's plans to move production from the factory to another country. This came after media reports that BAT might leave due to deteriorating business conditions in Croatia.