To Expand IQOS, Tobacco Giant Philip Morris Invests $320 Million in a Smokeless Products Factory
Philip Morris International will invest about $320 million to build a smokeless products factory in Dresden, Germany, producing HEETS tobacco sticks for IQOS. Full operations were planned for early 2019.
According to an official announcement from international tobacco giant Philip Morris International on July 19, PMI will invest approximately $320 million to build a smokeless products factory in Dresden, Germany. This factory will produce HEETS tobacco sticks for its electronic heated tobacco device, IQOS. The planned construction area is 80,000 square meters, with construction expected to start at the end of 2017 and full operation by early 2019, creating nearly 500 jobs.
PMI CEO Andre Calantzopoulos stated, "This investment is another step towards the future of smokeless products as alternatives to smoking. More than two million people have already quit smoking in favor of IQOS. We know this is just the beginning. We are committed to meeting smokers' demand for lower-risk alternatives to smoking."
PMI CEO Andre Calantzopoulos stated, "This investment is another step towards the future of smokeless products as alternatives to smoking. More than two million people have already quit smoking in favor of IQOS. We know this is just the beginning. We are committed to meeting smokers' demand for lower-risk alternatives to smoking."
PMI's EU region president, Frederic de Wilde, added, "We are encouraged by the successful launch of IQOS in Germany and its performance in other European countries. Europe has become the center for PMI's research, development, and investment in better alternatives to smoking."
In fact, since June 2016, IQOS and HEETS have been available to adult smokers in Germany, with pilot sales starting in Munich, Frankfurt, and Berlin. This plan will allow Germany to join the ranks of countries where PMI produces tobacco sticks for IQOS, including Italy and Switzerland. In March of this year, the company also announced plans to invest approximately 300 million euros to transform its Papastratos cigarette manufacturing plant in Greece into a factory for IQOS tobacco sticks.
Moreover, given the success of IQOS in other European countries, the new factory in Germany is expected to further expand the company's reach. Looking ahead, it is anticipated that by 2018, the annual production of tobacco sticks for this tobacco giant will reach nearly 100 billion units.
