British American Tobacco Bangladesh (BAT Bangladesh) has revealed its intention to move both its factory and main office from Mohakhali in Dhaka to a new location in Ashulia, beginning on 1 July 2025. The company’s move marks a significant shift toward compliance with urban planning and environmental regulations. Established over a century ago, the Mohakhali facility sits in a dense residential area and had drawn criticism from environmental activists. BAT applied for a lease extension but was unsuccessful in its case at the Appellate Division of the Supreme Court. The court’s decision has prompted the relocation to a more appropriate industrial setting. The new facility will be situated in Dehora, Dhamsona, Bolivodra Bazar, Ashulia, a growing industrial zone with better infrastructure and compliance frameworks. BAT Bangladesh announced that the shift would begin from 1 July, though operations are expected to run smoothly through a phased transfer to avoid disruptions in production and supply chains. This relocation aligns with broader efforts in Dhaka to reduce industrial activities within residential zones, protecting public health and improving urban living conditions. Ashulia, a designated industrial belt, offers proper zoning, better logistics access, and greater environmental oversight. BAT Bangladesh’s managing director, Shehzad Munim, emphasised that the move reflects both regulatory compliance and a commitment to environmental responsibility. He noted that the new site will allow BAT to upgrade facilities and strengthen community engagement in the region. Environmental groups have welcomed the decision and called it an important step toward reducing air, noise, and water pollution in residential areas. Local officials in Dhaka supported the move, saying it will free up space for greener initiatives and urban planning. Ashulia-based industrial authorities are preparing for the relocation by improving utilities, road access, and worker housing. They expect BAT’s presence to attract skilled labour and generate local economic benefits, including job creation and small business growth. Industry experts say that BAT’s move underscores a broader shift in Bangladesh’s industrial policy moving away from mixed zoning practices and toward focused industrial parks. This model supports modern compliance, efficient production, and sustainable development. In summary, BAT Bangladesh’s relocation from Mohakhali to Ashulia shows how private companies can balance regulatory needs, urban health, and industrial efficiency. The phased move is expected to modernise operations, support local development, and enhance environmental stewardship, setting a positive example for urban-industrial integration.
