BRITISH AMERICAN TOBACCO WANTS TO INVEST IN ZADAR TOBACCO FACTORY

ZAGREB, Feb 5 (Hina) - The British American Tobacco (BAT) company last week made a public announcement of its readiness to invest in the Zadar Tobacco Factory (TDZ) and become the majority owner of the factory. Before the public announcement, the British American Tobacco notified TDZ's management and small stock holders of its decision. The TDZ has not been manufacturing for three years already, its debts have been increasing, and its employees have been laid off. The BAT is ready to invest an amount of DM15 million in the factory, which will result in BAT's 76 percent ownership of the TDZ. According to their business proposal, the BAT will pay out all unpaid salaries. A director of the BAT, Anne Johnson said the BTA would introduce some of the most recognised international products, such as Lucky Strike and KENT to the Croatian market. The BAT will try to produce a Croatian brand of cigarettes for consumers of moderate solvency. Tobacco for the new domestic cigarette brand will be bought from Croatian tobacco growers, Johnson added. Our experts had already tested the quality of the Croatian tobacco, and we are convinced that a good quality product can be made with the Croatian tobacco, Johnson said. Given that the biggest creditor of the TDZ is the Croatian Government, a significant obstacle to final entrance of the BAT to Zadar could be TDZ's debts to the Croatian Government. Fifty percent of the entire TDZ's debt is unpaid tobacco taxes. We have notified the Croatian Government, and now we are waiting for their response, Johnson said and added if the Croatian Government does not want rivals on their market, the BAT has nothing to do in Croatia. In the meantime, the Rovinj Tobacco Factory (TDR) also expressed interest in the TDZ, and negotiated with small stockholders on buying off their stocks. The TDR said their goal was not to become a major owner of the TDZ. (hina) it mm/ms