According to the recent data published by the National Institute of Statistics (INS), the total value of exports of processed tobacco products, such as cigarettes and consumables for tobacco heating products, amounted to 1.48 billion euros in 2022, representing an increase of 140 million euros compared to the previous year.
BAT Romania, the largest player on the local tobacco market, exports about 70% of the volumes produced in Ploiesti, where the group’s second largest factory in Europe is located and where more than 500 million euros have been invested so far.
The total value of raw and processed tobacco imports in 2022 was around 375 million euros, maintaining the positive contribution of the tobacco sector to Romania’s trade balance at a value of over 1.1 billion euros. Also, BAT Romania remains one of the largest contributors to the state budget, with around 10.5 billion lei paid in 2022 as taxes and excises.
“BAT has invested over 500 million euros in the continuous development of technology and production lines in our factory in Ploiesti and currently around 70% of the products manufactured here are exported annually. Moreover, BAT Investment (BAT`s factory in Ploiesti) directly supports around 1,000 jobs and significant indirect investments. We remain a strategic partner for the economic development of the country, through our positive impact to Romania`s trade balance, the significant contributions to the state budget, as well as the continuous investments in the development of our business in Romania”, said Ileana Dumitru, Legal and External Affairs Director for the South Eastern Europe Area at BAT.
According to INS data, the volume of tobacco products exports has tripled in the last 10 years, from 474 million euros in 2012 to a total volume of almost 1.5 billion euros last year. Also, the National Institute of Statistics data indicate that, in 2022, tobacco products represented about 43% of the total exports of food products, beverages and tobacco.
With a market share of over 50%, BAT is the largest player on the tobacco market in Romania and has generated an impact of over 125 billion euros in the economy in the 25 years of presence on the local market so far. Of this amount, about 24 billion euros represent a direct contribution to the state budget, as taxes and excises. BAT offers 3,000 jobs in Romania and generates another 30,000 jobs indirectly, through its distribution and supply chain.
In December 2017, BAT launched glo in Romania, the company’s most innovative product that heats, without burning tobacco. At BAT level, Romania was the first country in the European Union to start the production of tobacco consumables used with glo, the innovative device from BAT`s portfolio that heats tobacco. BAT factory in Romania was the third global production center for these consumables and the first in Europe.