11 January 2014

Philip Morris to invest up to €500 million in Italy

New York - 10 January 2014 - Philip Morris International Inc. (PMI) has announced an investment of up to €500 million into its first manufacturing facility in the European Union and an associated pilot plant near Bologna, Italy to produce its potentially reduced-risk tobacco products. Once fully operational, the factory and pilot plant combined annual production capacity is expected to reach up to 30 billion units by 2016. 

"This investment underscores our strong commitment to Italy and in particular to the Bologna region which is not only home to our state-of-the-art filter factory, Intertaba, located in Zola Predosa, but also offers great infrastructure and, most importantly, access to exceptional human talent," said André Calantzopoulos, PMI’s Chief Executive Officer. 

Construction on the new facility is expected to begin immediately and last approximately two years. Once fully operational it will employ up to 600 people. The pilot plant is already near completion and will serve as the production facility for pilot and initial market launches. Importantly, the majority of the construction and manufacturing equipment will be procured from Italian companies and further benefit the country’s economy. 

In November 2013 PMI announced its plans to accelerate commercialization of one of its potentially reduced-risk products in the second half of 2014 in selected cities, prior to a full market launch in 2015. Specific markets for product launches will be announced at a later date. Separately, PMI in December 2013 established a strategic framework with Altria Group, Inc. under which Altria will make available its e-cigarette products exclusively to PMI for commercialization outside the United States. PMI plans to enter the e-cigarette market in the second half of 2014. 

Philip Morris International Inc. (PMI) is the leading international tobacco company, with seven of the world’s top 15 international brands, including Marlboro outside the U.S., the number one cigarette brand worldwide. PMI’s products are sold in more than 180 markets. In 2012, the company held an estimated 16.3% share of the total international cigarette market outside of the U.S., or 28.8% excluding the People’s Republic of China and the U.S.

Source: Philip Morris International