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Philip Morris International U.S. Affiliate to Create 500 Jobs Investing $600 Million in Aurora, Colo., Manufacturing Facility

发布时间:2024-07-17 10:23


New facility to support company’s U.S. mission to deliver a smoke-free future by moving legal-age consumers who smoke to better alternatives

Aurora facility joins existing smoke-free product manufacturing sites in Owensboro, Ky., and Wilson, N.C.

AURORA, Colo.--()--Today, Philip Morris International Inc. (PMI) (NYSE: PM) announced an investment of $600 million over the next two years through one of its U.S. affiliates to open a state-of-the-art manufacturing facility in Aurora, Colo. The facility is expected to create 500 direct jobs with ongoing annual economic impact of $550 million and an additional 1,000 indirect jobs* for the State of Colorado as it produces Swedish Match ZYN nicotine pouches to help meet the growing global demand from legal-age consumers for smoke-free products.

“PMI and its U.S. affiliates are accelerating their mission to move adults who smoke away from cigarettes in the U.S. by investing in new U.S. manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives,” said PMI Americas President and U.S. CEO Stacey Kennedy. “We believe Colorado is likeminded in its commitment to innovation, economic opportunity and public health, and we’re eager to work with the state and its talented workforce as we expand our U.S. manufacturing presence.”

PMI’s U.S. affiliate plans to break ground on the new facility later this year and to begin preliminary operations by the end of 2025 with regular production starting in 2026. The construction phase of the project alone is expected to create nearly 5,000 jobs related to the building of the facility with nearly $1 billion in economic impact.* Career opportunities at the new facility will cover a wide range of skill levels including positions such as engineers, production staff, technicians and quality control, with an anticipated average annual salary of around $90,000. Career opportunities will be shared at https://www.pmi.com/us/job-opportunities.

As previously announced, Swedish Match North America is also currently working to increase ZYN oral nicotine pouch production at its Owensboro, Ky., facility. Ongoing investments in both Owensboro and Aurora are designed to provide sufficient capacity in the near and mid-term for the current adoption growth rate of ZYN with U.S. adult nicotine consumers, as well as capacity for exports.

PMI first entered the U.S. market following its acquisition of Swedish Match in late 2022. Swedish Match’s ZYN oral nicotine pouches have been on the market in the U.S. for more than a decade and are designed as a better option for legal-age consumers who smoke and wish to continue using nicotine.

PMI is headquartered in Stamford, Conn., and its U.S. affiliates have more than 2,300 employees. PMI is on a mission to improve public health by providing the nearly 30 million legal-age U.S. consumers who smoke and other nicotine users with innovative products that are better alternatives to smoking. Since 2008, PMI has invested $12.5 billion globally to develop, scientifically substantiate, and commercialize innovative smoke-free products for legal-age nicotine consumers. PMI’s U.S. affiliates operate smoke-free product manufacturing facilities including the Swedish Match North America Owensboro, Ky., plant that makes ZYN nicotine pouches and a facility in Wilson, N.C., that produces HEETS, the consumable for the IQOS heated tobacco device. Swedish Match North America has a regional office in Richmond, Va.

U.S. marketing practices support 21+ access only

PMI’s U.S. affiliates are committed to responsible marketing practices focused on limiting access to adults 21 years of age and older. PMI’s U.S. affiliates do not use social media influencers in the U.S. or people under the age of 35 in marketing materials. They also employ independent age-verification systems like “Double Verify” to direct digital advertising to those over 21, and owned digital platforms are age-gated at the point of access and restricted to current nicotine users of legal age. Swedish Match North America is a member of “We Card,” a national nonprofit serving retailers of age-restricted products, and a founding board member and investor in TruAge®, a free retail technology that provides stores a more accurate way of age verification, including the ability to detect fake IDs and ensure 21+ access only.

Smoke-free mission in the U.S.

Because adult nicotine consumer preferences differ, PMI’s U.S. affiliates are working to offer a range of smoke-free options. This effort includes investing in expanded production for nicotine pouches and beginning targeted 21+ consumer activations of its innovative IQOS heat-not-burn device in select U.S. markets this year. IQOS is the first electronic nicotine device authorized by the U.S. Food and Drug Administration (FDA) as a modified risk tobacco product with reduced exposure claims. The FDA found that such authorization is appropriate for the protection of the public health. Although not risk-free, studies show that because IQOS heats tobacco instead of burning it, the device significantly reduces the production of and exposure to harmful and potentially harmful chemicals compared to combustible cigarettes for adults who smoke who switch to IQOS completely.

Commitment to corporate social responsibility

PMI’s U.S. affiliates have contributed approximately $25 million to charitable causes since 2022 and look to accelerate and amplify the good work of organizations already active within communities through both financial contributions and volunteering. Three key focus areas include supporting military veterans, empowering women and funding hyperlocal solutions. PMI’s U.S. affiliates also helped form “United to Safeguard America from Illegal Trade” (USA-IT), a coalition of nearly 100 national and state brand enforcement experts, law enforcement agencies, academics and leading business organizations working to combat illegal trade. USA-IT has trained more than 36,000 law enforcement officials.

Philanthropic partnerships in Colo.

PMI’s U.S.-based affiliates have announced their commitment to veterans in Colorado with an investment of $350,000 over two years to the Rocky Mountain Veterans Advocacy Project, a Colorado-based law clinic to help veterans in need access the benefits and care they’ve earned through their service. They also plan to support the Veterans Community Project that provides veterans’ housing with $100,000 directed to Colorado case management and are making donations to Colorado Gold Star Mothers, the Colorado Freedom Memorial, Hire Heroes USA directed to Colorado homeless veterans hiring, Soldier’s Angels for food provisions and Musicians on Call for Veterans Administration hospital visits. They also have committed $250,000 a year for the next eight years to the flexible housing fund that benefits residents of Adams County and the City of Aurora by supporting transitional housing for those in need.

*Estimates provided from economic impact analysis study conducted by EConsult Solutions, a Philadelphia-based economics consulting firm.

Additional multimedia assets

To learn more about the Colorado facility, view the supporting video news release http://u.pc.cd/E6F.

Philip Morris International in the U.S.: Delivering a Smoke-Free Future

Philip Morris International and its U.S. affiliates are working to deliver a smoke-free future. Since 2008, PMI has invested $12.5 billion globally to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke with the goal of transitioning legal-age consumers who smoke to better alternatives. In 2022, PMI acquired Swedish Match – a leader in oral nicotine delivery – creating a global smoke-free champion led by the IQOS and ZYN brands. The U.S. Food and Drug Administration has authorized versions of PMI’s IQOS electronically heated tobacco devices and Swedish Match’s General snus as Modified Risk Tobacco Products and renewal applications for these products are presently pending before the FDA. For more information, please visit www.pmi.com/us/ and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and goals and other forward-looking statements, including statements regarding expected operational performance; capital expenditures; and business plans and strategies. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco and/or nicotine use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; the impact of natural disasters and pandemics on PMI's business; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; if it is unable to attract and retain the best global talent, including women or diverse candidates; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2023, and the Quarterly Report on Form 10-Q for the first quarter ended March 31, 2024. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

Contacts

Philip Morris International
PMI U.S. Communications
Matt Sheaff
+1 (203) 524-9146
matthew.sheaff@pmi.com

Production of ZYN oral nicotine pouches at the Swedish Match Owensboro, Ky., facility. (Photo: Business Wire)

A Swedish Match employee packaging ZYN oral nicotine pouches at the Owensboro, Ky., facility. (Photo: Business Wire)

Production of ZYN oral nicotine pouches at the Swedish Match Owensboro, Ky., facility. (Photo: Business Wire)

Production of ZYN oral nicotine pouches at the Swedish Match Owensboro, Ky., facility. (Photo: Business Wire)

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