PMI will invest in an P8.8 billion expansion for the production of smoke-free products which aims to change the Philippine tobacco industry.
Philip Morris International (PMI), a major cigarette manufacturer, plans to spend P8.8 billion to increase the production of smoke-free products in the Philippines.
PMI announced that the $150 million investment will be used to expand its Philippine subsidiary, Philip Morris Fortune Tobacco Corp. Tanauan City, Batangas, Inc.'s (PMFTC) factory.
PMFTC is one of the leading agriculture and consumer products companies that aim to change the Philippine tobacco industry.
The expansion would produce specifically- designed heated tobacco sticks to create smoke-free products. It will also create more local jobs with production expected to start in the last quarter of 2023.
“We are proud to invest in the country’s journey to finally rid society of cigarettes, by providing those who would otherwise continue to smoke with better alternatives, while helping generate revenues for the government and livelihood opportunities to the people,” GMA News quoted PMFTC President Denis Gorkun.
The venture marks the tobacco multinational company's first big investment in the cigarette sector in the Philippines.
PMI added that it has approved the use of locally- grown tobacco in manufacturing heated tobacco sticks. It is envisioned that this will help sustain the livelihoods of Filipino tobacco producers and sari-sari store owners.
In 2020, PMFTC launched the IQOS tobacco heating system, which uses its patented HeatControl Technology to heat tobacco-filled sticks and create a water-based aerosol.
The best thing for any smoker is to quit tobacco and nicotine altogether. However, for those who would otherwise continue to smoke or use nicotine products, the IQOS tobaccos are designed as a smoke-free alternative. Unlike cigarettes, IQOS does not burn tobacco and therefore produces no smoke or ash.
Earlier this year, PMI also announced the expansion of its Philippine presence with the establishment of a new global business service hub in Manila, PMI Business Solutions (Philippines) Inc. (PBS). It is the company's second in the globe after the one in Krakow, Poland.
“The Philippines was chosen as a strategic location because of the diverse talent pool and availability in the country that would enable us to launch new capabilities to fuel transformation across PMI,” PBS President Sharmini Krishnan said.
Meanwhile, the Department of Trade and Industry (DTI) said last month that it was working on the Vape Bill’s implementing rules and regulations (IRR), which essentially controls the manufacture and sale of vape and tobacco products.
Tags: #PMI, #Smoke-free, #TobaccoIndustry, #Investment