Philip Morris International invests $232 million to expand U.S. factory, implements 24/7 production model, annual production capacity reaches 900 million cans

Philip Morris International invests $232 million to expand U.S. factory, implements 24/7 production model, annual production capacity reaches 900 million cans

Philip Morris International announced that it will invest $232 million to expand its nicotine pouch production plant in Owensboro, Kentucky, USA. The expanded plant will change from a 24-hour work system five days a week to a 24-hour work system seven days a week. The plant is expected to provide a production capacity of about 900 million cans in 2025.

 

On August 27, Philip Morris International (PMI) (NYSE: PM) announced through its official website that it will invest $232 million through its Swedish Match subsidiary to expand a nicotine pouch factory in Owensboro, Kentucky, USA. The company claims that this is part of its so-called "smoke-free future" strategy.

 

The company said the expansion of the plant is expected to add 450 jobs, increasing the factory's workforce by about 40% to help meet the growing demand for smoke-free products.

 

Construction work is underway at the Owensboro facility and is expected to be completed in the second quarter of 2025, with the expansion phase expected to create nearly 2,800 jobs and have an economic impact of approximately $414 million.

 

In addition, the expanded facility will switch from a 24-hour, five-day-a-week operation to a 24-hour, seven-day-a-week operation to improve production efficiency.

 

The Owensboro facility currently has approximately 1,100 employees, and the continued expansion of the facility is expected to provide approximately 900 million cans of production capacity by 2025.

 

Stacey Kennedy, CEO of PMI's U.S. business, said in a statement,

 

"We are accelerating our mission to a smoke-free future, working with our U.S. subsidiaries to move adults away from cigarettes and other traditional tobacco products by providing better alternatives."

 

Kentucky Governor Andy Beshear said:

 

"Philip Morris International's Swedish Match subsidiary has been a great partner and job creator in the region for many years, and I am excited about this incredible new investment and the 450 great jobs it will create for families in and around Owensboro. Our economy continues to set records, and today's announcement shows that we are creating jobs for our people, not taking our people to work. I want to thank and congratulate the company's leadership for doubling down on their efforts in the Commonwealth, and look forward to more prosperity in the future."

 

In July of this year (2024), PMI announced that it would invest $600 million over the next two years through its U.S. subsidiary to open a nicotine pouch manufacturing plant in Aurora, Colorado.

 

PMI said the new plant and the Owensboro expansion will provide the capacity needed to meet ZYN's short- and medium-term U.S. market needs.