Prime Minister Andrej Plenkovic visited the British American Tobacco (BAT) factory in Kanfanar, Istria on Tuesday, saying that he was optimistic about further production at the factory and that he wanted to continue talks on the matter after the forthcoming election.

“We discussed BAT’s further activities in Kanfanar and the functioning of this factory. Our wish is to continue talks with BAT after the election on further production and to find an appropriate framework that will ensure production planning and pricing policy in the years ahead,” Plenkovic told the press after meeting the CEO of BAT Adria, Zvonko Kolobara.

“We believe we will find the framework this autumn,” the prime minister said, adding that it was key to keep jobs in the factory and maintain tobacco production in Virovitica-Podravina County.

“It is, of course, in our interest that the 400 jobs are kept. Considering the wider context of the tobacco industry, I believe they would want the factory to operate and the workers to be here. I am optimistic and think that we can find a solution that will benefit the state and the workers, as well as the company itself,” Plenkovic said.

Kolobara declined to comment on the unofficial information that the factory would be closed down.

“As a global company, we continually evaluate our production sites across the world, taking into account the business environment. I hope this meeting will produce positive results. The media reports about the factory being closed down are unofficial and I cannot comment on them as such,” he said.

According to media reports, BAT plans to shut down the Kanfanar factory and move to another country because BAT executives are apparently dissatisfied with the business environment and increased excise taxes on cigarettes in Croatia.

BAT took over the factory, previously called Tvornica Duhana Rovinj (TDR), from the Adris Group in September 2015. It also acquired companies from Adris’s tobbaco unit. The value of the transaction was €505 million. Under the sales contract, BAT undertook to maintain production at Kanfanar for at least five years after the takeover.