BAT acquired the factory in Kanfanar, on the Istria peninsula, in 2015 when it took over local tobacco company Tvornica Duhana Rovinj (TDR) for over €500 million.
According to Brian Chambers, head of BAT operations for Europe and America, the company's Croatia operations are on track to become carbon-neutral ahead of the group's global 2030 target.
"This investment has brought the overall value of the company’s investments in sustainability projects in the last two years to €19 million in Croatia," CEO of BAT Adria cluster Zvonko Kolobara said during a presentation of the plant.
BAT’s Adria cluster also includes Bosnia, Serbia, Slovenia, North Macedonia, Kosovo, Montenegro and Albania.
The company also claimed to have launched an €80 million investment plan to upgrade the Kanfanar factory to make less harmful heated-tobacco products.