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On Tuesday, Philip Morris International Inc (NYSE:PM) revealed an investment of $232 million through one of its Swedish Match affiliates to expand the production capacity of its manufacturing facility in Owensboro, Kentucky.
The expansion is projected to add 450 direct jobs and have an ongoing annual economic impact of $277 million, along with creating 410 additional indirect jobs in Kentucky.
“We are accelerating our mission toward a smoke-free future, working with our U.S. affiliates to move adults away from cigarettes and other traditional tobacco products by providing better alternatives,” said Stacey Kennedy, CEO of PMI’s U.S. business.
The facility manufactures ZYN nicotine pouches to satisfy the increasing demand from adults transitioning from cigarettes or other traditional tobacco products.
Also Read: Tobacco Company Philip Morris Lights Up Q2: Earnings Surpass Estimates, Raises 2024 EPS Forecast
“This investment in U.S. manufacturing capacity will increase the Kentucky plant’s workforce by about 40 percent, providing good-paying jobs and helping to meet the increasing demand for smoke-free products.”
Construction of the expanded facility is already in progress, including the addition of extra production space, with gradual increases in production anticipated throughout the project.
The expansion is expected to be completed by the second quarter of 2025. The construction phase alone is projected to generate nearly 2,800 jobs and have an economic impact of approximately $414 million.
The facility will offer a variety of career opportunities across different skill levels, including roles for engineers, production staff, technicians, and quality control professionals.
Philip Morris entered the U.S. market with its acquisition of Swedish Match AB in late 2022.
Swedish Match’s ZYN oral nicotine pouches, available in the U.S. for over a decade, offer a preferable alternative for legal-age consumers who smoke or use other traditional tobacco products and want to keep using nicotine.
The ongoing expansion of the facility in Kentucky is anticipated to provide around 900 million cans of capacity for 2025.
Price Action: PM shares are trading higher by 0.50% to $121.86 at last check Tuesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Posted In: PM
