Philip Morris to spend P8.8 billion for smoke-free products in Philippines

Major cigarette manufacturer Philip Morris International (PMI) is looking to spend some P8.8 billion to boost the manufacturing of smoke-free products in the Philippines.

PMI said the investment — equivalent to $150 million — will cover an expansion wing of its Philippine unit Philip Morris Fortune Tobacco Corp. Inc. 's (PMFTC) factory in Tanauan City, Batangas.

The expansion will produce specially designed heated tobacco sticks for smoke-free products and create 220 jobs for locals, with commercial 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,” PMFTC President Denis Gorkun said in an emailed statement.

PMFTC rolled out the IQOS tobacco heating system in 2020, using its patented HeatControl Technology which heats tobacco-filled sticks to release a water-based aerosol.

PMI earlier in the year announced the expansion of its Philippine footprint through a new global business service hub — PMI Business Solutions (Philippines) Inc. or PBS — in Manila, its second in the world 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 then.

The Department of Trade and Industry (DTI) last month said it was preparing the implementing rules and regulations (IRR) of the Vape Bill, which essentially regulates the manufacture and sale of vape and tobacco products. —NB, GMA News