British American Tobacco (BAT) Bangladesh on Thursday announced its decision to relocate its registered office from Mohakhali to Dehora, Dhamsona, Balibhadra Bazar in Ashulia, as well as close its Dhaka factory.
The multinational tobacco manufacturer declared this in a disclosure filed with the Dhaka Stock Exchange (DSE).
The move follows a Supreme Court verdict rejecting BAT Bangladesh's appeal to extend the lease agreement for its head office and factory premises located in the capital's Mohakhali DOHS area. As a result, the company must vacate the site.
On May 29 last, the Appellate Division, led by Chief Justice Syed Refaat Ahmed, dismissed BAT Bangladesh's appeal, upholding a prior High Court ruling on the lease dispute with the Dhaka Cantonment Board.
Previously, on December 12 last year, the High Court had dismissed a writ petition filed by the company challenging the board's decision not to renew the lease for the Mohakhali property.
A BAT Bangladesh spokesperson said: "BAT Bangladesh had a 90-year lease from the Cantonment Board since 1964, extendable every 30 years. Following a recent verdict from the Appellate Division of the Supreme Court on May 29, 2025, our appeal to extend the lease period was dismissed. We respect the decision of the honorable Supreme Court and have aligned with the Bangladesh Army to vacate the premises by mid-July 2025. Currently, we are working to achieve a smooth transition to a new Head office."
They added: "Meanwhile, in line with our long-term plan for business sustainability, we have already planned beyond the current premises and set up a factory in Savar. Significant investments have been made in our Savar facility in the recent years, as part of our continued foreign direct investment in Bangladesh."
They further said: "Given the scale of our business and the sudden nature of this change, we anticipate certain challenges and adverse impact on our business operations. However, we are taking all necessary measures to minimize this impact and protect the interests of our shareholders."
According to BAT Bangladesh's 2024 annual report, the company has been leasing the factory premises from the Dhaka Cantonment Board since 1964. Each lease term spans 30 years, with the option to renew for a total duration of up to 90 years.
The company had applied to renew the lease for the remaining 30 years, but after the board declined to extend it, BAT Bangladesh initiated legal proceedings to enforce what it claimed were contractual rights.
Environmental activists have staged protests and formed human chains on multiple occasions, demanding the relocation of BAT Bangladesh's factory from Mohakhali, citing pollution concerns.
BAT Bangladesh has three factories located at Mohakhali, Savar and Manikganj, and a green leaf trash plant in Kushtia.
BAT Bangladesh recorded Tk9,597 crore in gross revenue during the first quarter of 2025, despite a sharp decline in cigarette sales.