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Philip Morris to expand Zyn production in US with new plant in Colorado
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Philip Morris to expand Zyn production in US with new plant in Colorado
Jul 16, 2024 6:20 AM

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.

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