Philip Morris International (PMI) on Tuesday said it plans to invest $600 million through one of its U.S. affiliates to open a state-of-the-art manufacturing facility in Aurora, Colorado, for its modern oral nicotine pouch Zyn to help meet consumer demand for smoke-free products.
The facility is expected to create 500 direct jobs and an additional 1,000 indirect jobs, the Stamford, Connecticut-based tobacco company said. PMI’s U.S. affiliate plans to break ground on the new facility later this year and to begin preliminary operations by the end of 2025 with regular production starting in 2026.
“PMI and its U.S. affiliates are accelerating their mission to move adults who smoke away from cigarettes in the U.S. by investing in new U.S. manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives,” said PMI Americas President and U.S. CEO Stacey Kennedy. “We believe Colorado is likeminded in its commitment to innovation, economic opportunity and public health, and we’re eager to work with the state and its talented workforce as we expand our U.S. manufacturing presence.”
PMI bought Zyn maker Swedish Match North America (SMNA) in 2022. SMNA is also working to increase production of Zyn at its Owensboro, Kentucky, facility.
“Ongoing investments in both Owensboro and Aurora are designed to provide sufficient capacity in the near and mid-term for the current adoption growth rate of Zyn with U.S. adult nicotine consumers, as well as capacity for exports,” PMI said.
This past June, PMI suspended online sales nationwide of Zyn following a subpoena from the attorney general of the District of Columbia and its compliance with the flavor ban in Washington, D.C., that took effect in 2022.
In April, Zyn contributed heavily to PMI’s first-quarter profits. The modern oral nicotine pouch had a 79.7% growth in shipment volume for the quarter, the company reported.
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