Philip Morris opens P8.8-B ‘smoke-free’ cigarette plant

PHILIP Morris International (PMI) on Monday inaugurated a new P8.8-billion manufacturing facility for smoke-free products, or e-cigarettes, and said it aimed to purchase local tobacco worth $120 million this year.

The facility, located at the compound of PMFTC Inc., PMI’s local affiliate, in Tanauan, Batangas City, has the capacity to produce 3.5 billion smoke-free cigarette sticks per year.

“The opening of this state-of-theart facility, an investment of P8.8 billion or $150 million, marks another significant milestone in our commitment to a smoke-free Philippines,” PMI Chief Executive Officer Jacek Olczak said.

The facility is among the completed foreign investments during the current administration and is “a testament to our confidence in the Philippine economy and the local tobacco farming industry,” Olczak added.

PMFTC Inc. President Denis Gorkun, meanwhile, said: “This factory will produce heated tobacco sticks for our smoke-free products. That is both a milestone in our journey and a pledge to prioritize the well-being of our local communities.”

The new facility will produce specially designed heated tobacco sticks under the brand Blends, exclusive for PMFTC’s BONDS by IQOS, which was launched in November 2022.

When BONDS heats the tobacco, it emits, on average, 95 percent lower levels of harmful chemicals compared to cigarettes, PMI claimed.

“These smoke-free products, which contain nicotine, are not riskfree. But science shows that these products are a better choice than smoking,” Olczak said.

He also noted that their smokefree products now represented 36.4 percent of their adjusted net revenues and were present in 84 markets with 33 million users.

IQOS, said to be the world’s most successful tobacco heating device, was launched by PMFTC in 2020 in the Philippines, together with its accompanying tobacco sticks called HEETS.

IQOS Iluma, the latest version of PMI’s heated tobacco device, and its consumable heat sticks, called Terea, were introduced in the country last year.

In late 2023, PMFTC added ZYN nicotine pouches to its portfolio of smoke-free products. ZYN is available locally online and in IQOS stores, vape stores, and select 7-Eleven outlets and tobacconists.

PMI said all of their smoke-free, nicotine-containing products “are intended for adults who would otherwise continue smoking or using other nicotine products and are looking for a better alternative to cigarettes.”