British American Tobacco (BAT) announced a €4.7 million ($5.1 million) investment in a biomass-fuelled heating plant at its cigarette factory in Kanfanar, Croatia. This initiative aims to reduce the factory’s CO2 emissions by 65%.
Zvonko Kolobara, CEO of BAT’s Adria cluster, shared that this investment increased the total value of the company’s sustainability projects in Croatia to €19 million over the past two years.
In addition to the Kanfanar factory, BAT owns Hrvatski Duhani, a tobacco production organizer located in Virovitica, eastern Croatia. The company operates logistics hubs in Rijeka and Pitomača, which sources tobacco from 26 countries to supply factories in Germany, Poland, and Hungary. BAT also owns iNovine, Croatia’s second-largest tobacco kiosk chain.
BAT acquired the Kanfanar factory in 2015, purchasing the local tobacco company Tvornica Duhana Rovinj (TDR) for over €500 million.
As Croatia’s only cigarette producer and exporter, BAT has invested over €700 million in the country over the last decade. The company is one of the largest investors and employers in Croatia, according to Kolobara.
The company has launched an €80 million investment plan to upgrade the Kanfanar factory for less harmful heated-tobacco products.
According to Brian Chambers, head of BAT operations for Europe and America, the company’s operations in Croatia are on track for carbon neutrality ahead of the group’s global target for 2030.
