By Timothy S. Donahue

Top Takeaways:

• Major build: Japan Tobacco International is investing €300 million in a new Romanian factory scheduled to be completed in 2027.
• Strategic shift: The facility will upgrade its current Bucharest plant and increase export capacity.
• Europe anchor: Romania remains a major manufacturing hub, supplying over 70 markets.

As tobacco demand is shifting, manufacturing is shifting with it. Japan Tobacco International is doubling down on Romania with a €300 million (US$346.8 million) investment in a new, large-scale production facility in Ștefăneștii de Jos—one that will eventually replace its current Bucharest factory and serve as a key part of its European supply chain for the next decade.

The new site will cover nearly 70,000 square meters and is expected to be completed in 2027, with a phased plan to transition production from the current facility. “This is one of JTI’s most important investments in Romania,” said Gabriella Offeddu, general manager for the region, adding it reflects confidence in the country’s infrastructure and workforce.

The investment focuses equally on modernization and capacity.

JTI stated the facility will incorporate advanced manufacturing technologies, run entirely on renewable energy, and feature expanded waste management and a dedicated water treatment system—part of a larger effort to promote more sustainable operations.

Romania already plays a vital role in JTI’s global presence. The company employs approximately 1,600 people in the country, and its existing factory exports over 70% of its production to about 70 markets worldwide, making it one of JTI’s key manufacturing hubs, according to Klaus-Walter Thul, JTI Romania factory lead.

“Our current factory is already one of JTI’s top-performing facilities […]. Our new factory… will integrate advanced equipment and technologies and highly efficient manufacturing processes, opening up possibilities for further expansion,” Thul said.

That export focus is unlikely to change—if anything, it will grow. JTI has been operating in Romania since the mid-1990s and was the first multinational tobacco company to establish manufacturing operations in the country, gradually expanding its presence over the past three decades.

The new facility signifies a long-term commitment that Europe—despite stricter regulations and declining cigarette volumes—will remain a major manufacturing hub for both regional and global supply.