July 16 (Reuters) - Philip Morris International ( PM )
said on Tuesday it would invest $600 million to open a
manufacturing facility in Colorado to produce its Zyn nicotine
pouches to help meet demand for alternatives to traditional
tobacco products in the U.S.
The plant is expected to begin preliminary operations by
2025 and create 500 jobs in the state, the world's biggest
tobacco company by market value said, adding that it would
invest the amount over the next two years through one of its
U.S. affiliates.
Philip Morris ( PM ) entered the U.S. market after it bought
Zyn-parent Swedish Match in a $16 billion deal in 2022, as part
of its efforts to provide alternatives to traditional cigarettes
amid greater health awareness and stricter regulation.
The company has benefited from strong demand for Zyn, which
it says does not contain tobacco, in the United States, with
shipments rising nearly 80% in the first quarter over the year
earlier.
But in June, Philip Morris ( PM ) suspended the nationwide sales on
Zyn.com following a subpoena from the District of Columbia,
which requested information about its compliance with the
state's 2022 ban on the sale of all flavored tobacco.
Philip Morris ( PM ) is also seeking to launch its flagship heated
tobacco device IQOS in the U.S., with a test rollout expected in
the second quarter - which the company is set to report next
week.
But the plans faced pushback from anti-tobacco and health
groups, which have written to the U.S. Food and Drug
Administration to oppose IQOS-related applications the company
has submitted to the agency, according to a Reuters report
earlier on Tuesday.