Philip Morris International plans to invest an additional P8.8 billion in the Philippines for the manufacture of specially designed heated tobacco sticks for its smoke-free products.
The investment through PMFTC Inc. is the largest investment to date in the cigarette alternative category in the country and the first major investment by a tobacco multinational in the category domestically.
PMFTC said the project is expected to span a two-year period and could generate as much as 220 new specialized jobs.
The investment will include an expansion wing at PMFTC’s state-of-the art factory in Tanauan City, Batangas. Actual commercial production is expected to commence in the fourth quarter of 2023.
PMFTC said this will further support the local tobacco growing industry.
Denis Gorkun, PMFTC president, said locally grown tobacco has also been approved for inclusion in the production of heated tobacco sticks.
“Through PMI’s continued investment in research, development and production, we can now heat tobacco in a way that is satisfying to adult smokers. Using sophisticated electronics, IQOS precisely heats specially designed tobacco units just enough to release a flavorful nicotine-containing vapor,” Gorkun said.
In 2020, PMFTC launched the IQOS tobacco heating system, PMI’s flagship smoke-free product, in the Philippines. IQOS devices use a patented HeatControl Technology that precisely heats, without burning, tobacco-filled sticks wrapped in paper called HEETS to release a water-based aerosol. Unlike cigarettes, IQOS does not burn tobacco and therefore produces no smoke and no ash. – Irma Isip
