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Philip Morris International

Philip Morris International Inc. (PMI) Inaugurates Manufacturing Facility in Italy for Potentially Reduced-Risk Products*

2016-09-26 10:02
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  • First manufacturing facility for large scale production of heated tobacco products
  • Anticipated investment of approximately EUR 500 million for the facility and pre-existing pilot plant
  • Up to 600 new jobs when fully operational
  • Total initial annual capacity of approximately 30 billion units when fully operational, equivalent to approximately 6% of industry cigarette sales in PMI’s European Union Region

LAUSANNE, Switzerland -- (BUSINESS WIRE) -- Philip Morris International Inc. (PMI) (NYSE/Euronext Paris: PM) inaugurates today its first manufacturing facility for large scale production of two heated tobacco alternatives to cigarettes. The announcement was made at an event at the factory in the presence of the Italian Prime Minister Matteo Renzi. The initial annual production capacity of the factory will be approximately 30 billion units.

“Our ambition is to lead a full-scale effort to ensure that non-combustible products ultimately replace cigarettes to the benefit of adult smokers, society, our company and our shareholders. This factory is a milestone in our roadmap toward this paradigm shift,” said André Calantzopoulos, PMI’s Chief Executive Officer. “This investment underscores our strong commitment to Italy and in particular to the Bologna region, which is not only home to one of our most technologically advanced filter factories located in Zola Predosa, but which also offers great infrastructure and, most importantly, access to exceptional human talent.”

Representing an anticipated investment of approximately EUR 500 million, this state-of-the-art facility currently employs over 300 people and, when fully operational, may employ up to 600. PMI affiliates in Italy already employ over 1000 people. The pre-existing pilot plant will gradually become a training center to continue to develop PMI’s manufacturing know-how and serve as a knowledge-hub for other PMI manufacturing facilities.

PMI’s investment in the development and rigorous scientific assessment of products with the potential to present less risk of harm compared to cigarettes spans more than a decade. It encompasses a wide-range of tobacco and non-tobacco containing product platforms. The tobacco heating device iQOS, the first of these products to be commercialized in November 2014, is now sold in cities in ten countries, and PMI has plans to expand sales to key cities in an additional ten markets before the end of the year. Results of commercialization to date are encouraging. Extensive research to validate the product’s potential to present less risk of harm compared to continued cigarette smoking is well advanced with very promising results to date. Any conclusion on reduced disease risk will be based on the totality of the evidence.

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Philip Morris International Inc.

Philip Morris International Inc. (PMI) is the world’s leading international tobacco company, with six of the world's top 15 international brands and products sold in more than 180 markets. In addition to the manufacture and sale of cigarettes, including Marlboro, the number one global cigarette brand, and other tobacco products, PMI is engaged in the development and commercialization of Reduced-Risk Products (“RRPs”). RRPs is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes. Through multidisciplinary capabilities in product development, state-of-the-art facilities, and industry-leading scientific substantiation, PMI aims to provide an RRP portfolio that meets a broad spectrum of adult smoker preferences and rigorous regulatory requirements. For more information, see www.pmi.com and www.pmiscience.com.

* Reduced-Risk Products (RRPs) is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes.

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