ZAGREB (Croatia), September 9 (SeeNews) – Croatia's government is holding negotiations with British American Tobacco (BAT) on the company's plans to relocate its tobacco factory from Kanfanar, on the Istrian peninsula, to another country, prime minister Andrej Plenkovic said.
"We are holding talks, I am sure that we will reach a quality agreement that will enable them to stay in Croatia," Plenkovic said in a press release on Tuesday.
He made the statement in response to earlier media reports that BAT might leave the country.
In June, news daily Glas Istre reported that some 500 employees could lose their jobs, while the Istrian peninsula could remain without one of its industrial symbols, if the tobacco giant does relocate its Croatian production abroad.
The factory in Kanfanar now produces some 12 billion cigarettes per year. Its maximum production capacity is 20 billion units.
BAT acquired the cigarette factory in 2015 when it took over local tobacco producer Tvornica Duhana Rovinj (TDR).
Plenkovic also said that at the time BAT entered in Croatia, it has signed a deal to stay in the country at least five years.