British American Tobacco (BAT), which bought the TDR factory in Kanfanar in June 2015 for €505m, has allegedly begun preparations to close the factory, which would leave more than 500 workers there out of work. The decision appears to have been taken after the Croatian government said it would increase duties on cigarettes by HRK 40 per 1,000 pieces. After the purchase of TDR, which is the largest foreign investment in the history of Croatia, BAT has invested around €45m into its operations. Last year, it produced 12 billion cigarettes, an increase in output of 60 percent.