PMI launched its IQOS devices in the Philippines in 2020 and is now making the country’s largest investment to date in the category to add manufacturing lines for its heated tobacco sticks. Photo credit: Vaping 360 under Creative Commons 2.0
Philip Morris International (PMI) announced it will be investing another PHP8.8 billion (US$150 million) in Philip Morris Fortune Tobacco Corp. (PMFTC), its Philippines affiliate, to add manufacturing lines that will produce heated tobacco sticks for its smoke-free products.
This first significant investment made by a multinational tobacco company will be used to expand PMFTC's cigarette factory in Tanauan City, Batangas over a period of two years with actual production slated to start in Q4 2023.
PMI projects the new production lines will generate as much as 220 specialized jobs and help the local tobacco farming sector as PMFTC will use locally-grown tobacco that is approved for producing heated tobacco sticks.
“This marks the largest investment to date in the cigarette alternative category in the country and brings PMFTC a step closer to achieve its vision of a smoke-free Philippines,” PMI said in a statement.
"We can say that we are proud to invest in the country's journey to finally rid society of cigarettes, by providing better alternatives to those who would otherwise continue to smoke, while helping generate revenues for the government and livelihood opportunities for the people," said Denis Gorkun, PMFTC president.
PMFTC considers itself to be the leading cigarette manufacturer in the Philippines, controlling over 90% of the local market.