British-American Tobacco (BAT) launched its new Cambodian joint venture August

30 and announced plans for a major capital upgrade.

The $25 million joint venture will begin introducing modern international machinery

from November and the group has plans to build a new primary tobacco processing plant,

according to Paul Adams, BAT's regional director for the Asia-Pacific region.

Adams said the venture would significantly develop the emerging Indo-China manufacturing

base.

He said BAT expected to begin construction of the new plant in the new year and added

it would encourage tobacco growing along the Mekong.