In 2003 campaigners managed tosuccessfully force the world’s second biggest tobacco companyto leave because of criticism from the British government, in particular from former British Prime Minister Tony Blair and Conservative MP and former deputy chairman of BAT, Ken Clark.

BAT said in a statement released on Monday that around USD 50 million will be invested in the next five years to establish a world-class manufacturing facility that will produce London, an ‘iconic brand of international prestige and quality’.

The joint venture company, British American Tobacco Myanmar Ltd, with I.M.U Enterprise Ltd (IMU), which will manufacture, distribute and market BAT’s brands for the domestic market.

IMU is part of a leading local conglomerate, Sein Wut Hmon Group, which has an extensive fast-moving consumer goods distribution network throughout the country.

Rehan Baig, Managing Director of British American Tobacco Myanmar Ltd, said,‘Historically, British American Tobacco had a market leading position in Myanmar which we are aiming to rebuild with our partner. The country has strong opportunities for growth and with the re-entry, we are very keen to offer consumers an attractive range of international quality products and brands through responsible marketing. The joint venture gives us a very sustainable and long term position in this growing economy.’

BAT also claimed they will employ approximately 400 people to begin with and we also intend to collaborate with local farmers to improve their yield and quality of local tobacco.

Nicandro Durante, Chief Executive of British American Tobacco said, ‘We are truly excited with the post-sanctions development in Myanmar and are keen to play an active part in the country's economic and social advancement. Our ability to build strong positions in emerging markets such as Myanmar, is one of our key strengths as the one of the largest international tobacco companies in the world.

Sao Khun San Aung, Managing Director of IMU, said, ‘We are very pleased to have British American Tobacco as our partner. I believe that together we have the right mix of global and local expertise in manufacturing, sales and distribution to help expedite the growth of the local economy.’

According to The Financial Times, shares in BAT rose 1.6 per cent to £35.37, outperforming a rising FTSE 100 index.