Philip Morris International to Build Smoke-Free Product Facility in Germany
Philip Morris International Inc. (PMI) (NYSE/Euronext Paris: PM) announces plans to invest approximately USD 320 million in a new high-tech facility in Dresden, Germany, to produce HEETS, the tobacco units to be used with the electronic tobacco heating device IQOS.
Construction of the 80,000 m2 facility is scheduled to begin in late 2017. Once fully operational in early 2019, the factory is expected to employ about 500 people.
IQOS and HEETS have been available for adult smokers in Germany since June 2016, starting with pilot commercialization in Munich, Frankfurt and Berlin. IQOS is currently available in key cities in more than 25 markets around the world. Commenting on the announcement, André Calantzopoulos, PMI’s Chief Executive Officer, said:
“This investment represents another step towards a future in which smoke-free products replace cigarettes. Already, over two million people have given up smoking and switched to IQOS, and we know this is just the beginning. We are fully committed to meet smoker demand for potentially less harmful alternatives to cigarettes.”
Frederic de Wilde, President of PMI’s European Union Region added:
“We are encouraged by the successful launch of IQOS in Germany and its performance in other European countries. Europe has become a hub for PMI’s research, development and investment in better alternatives to cigarettes.”
With this announcement, Germany will join a growing list of countries where PMI manufactures tobacco units for IQOS, including Italy and Switzerland. In addition, PMI recently announced the conversion of the cigarette manufacturing facility of its affiliate in Greece. By the end of 2018, PMI plans to have a total annual installed capacity of heated tobacco units of approximately 100 billion units.
IQOS is one of four scientifically substantiated smoke-free product platforms that PMI is developing to address adult smoker demand for better alternatives to cigarettes.
Since 2008, PMI has hired more than 400 scientists and experts and invested over USD 3 billion in research, product development and scientific substantiation for smoke-free products. The company openly shares its scientific methodologies and findings for independent third-party review and verification, and has published its research in over 200 articles and book chapters since 2011. Results of scientific research conducted by PMI to date indicate that IQOS is likely to reduce the risk of harm compared to cigarette smoking, and is a better choice for those who would otherwise continue to smoke.
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 that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continued smoking. 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.
Philip Morris International
T: +41 (0)58 242 4500
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