Philip Morris International recently announced a $232 million expansion at a Kentucky factory to increase production of nicotine pouches as part of its move toward a “smoke-free future.” The expansion at the Swedish Match plant in Owensboro will create 450 jobs, with the factory’s workforce increasing by 40% to meet the growing demand for smoke-free products.
The factory produces ZYN nicotine pouches, a popular alternative for consumers transitioning from cigarettes or other tobacco products. These dissolvable pouches release nicotine slowly by being placed between the lip and gums, offering a less harmful option.
Stacy Kennedy, CEO of PMI’s U.S. business, emphasized the company’s commitment to providing better alternatives to traditional tobacco products. The investment, to be handled by PMI’s affiliates, is expected to be completed by the second quarter of 2025, creating thousands of jobs during the construction phase. The expanded facility will operate around-the-clock to meet increasing demand.
Kentucky Governor Andy Beshear praised PMI for investing in the state, recognizing the economic boost it will bring. This expansion comes after PMI’s announcement of a $600 million investment in a new nicotine pouch manufacturing plant in Colorado to meet the growing U.S. demand for ZYN.
ZYN, which contains nicotine powder and various flavors, is marketed to adult tobacco users as a safer alternative. Even though it doesn’t contain tobacco, U.S. regulators treat it as a tobacco product. The pouches are gaining popularity in the tobacco industry as they eliminate the need for spitting, a common issue with older tobacco products.
Overall, PMI’s expansion of its nicotine pouch production reflects the company’s commitment to a healthier future and providing options for consumers looking to quit traditional tobacco products.
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