Philip Morris International injects $232m into Kentucky plant expansion, promising 450 new jobs

Philip Morris International Inc. (PMI) (NYSE: PM) is making a significant investment in its U.S. operations, committing $232 million to expand its Owensboro, Kentucky, manufacturing facility through its affiliate, Swedish Match. This strategic expansion is anticipated to create 450 direct jobs and spur an additional 410 indirect jobs, delivering an annual economic impact of $277 million for the state of Kentucky.

The Owensboro plant, pivotal in producing ZYN nicotine pouches, is at the heart of PMI’s broader initiative to encourage legal-age smokers to transition from traditional cigarettes to smoke-free alternatives. As demand for ZYN products continues to surge, this expansion will enhance the facility’s capacity to meet market needs, reinforcing PMI’s commitment to promoting public health through less harmful nicotine consumption methods.

Kentucky Governor Andy Beshear welcomed the investment, underscoring its importance to the local economy and community. “Philip Morris International’s Swedish Match affiliate has been a cornerstone of job creation and economic stability in this region for years. This new investment not only secures 450 high-quality jobs for Owensboro and surrounding areas but also represents a vote of confidence in Kentucky’s workforce and economic resilience,” said Governor Beshear. “We’re bringing jobs directly to our residents, ensuring that families can thrive right here at home.”

This expansion will increase the Owensboro facility’s workforce by approximately 40%, highlighting PMI’s commitment to its smoke-free future vision. Stacey Kennedy, CEO of PMI’s U.S. operations, emphasized the transformative nature of this investment: “Cigarette smoking is the most dangerous way to consume nicotine, and we are focused on accelerating our shift toward a smoke-free future. By investing in U.S. manufacturing, we are not only creating well-paying jobs but also advancing our mission to provide better alternatives to cigarettes for adult consumers.”

The expansion project is already in progress, with the construction of additional production space underway. The facility is expected to progressively ramp up its output, with the expansion slated for completion by the second quarter of 2025. The construction phase alone is expected to generate nearly 2,800 jobs and contribute approximately $414 million to the local economy.

To accommodate the increased production demand, the Owensboro facility will shift from a five-day workweek to a seven-day operation, starting in the fourth quarter of this year. By 2025, the facility is expected to produce around 900 million cans of ZYN annually, further solidifying its role in PMI’s U.S. strategy.

This investment in Kentucky is part of PMI’s broader expansion efforts across the United States. In July, the company announced a $600 million investment to establish a new nicotine pouch manufacturing facility in Aurora, Colorado. Together, these expansions are designed to meet the growing demand for ZYN pouches among U.S. legal-age consumers who are seeking smoke-free alternatives.

PMI’s U.S. expansion is rooted in its 2022 acquisition of Swedish Match AB, a move that marked PMI’s entry into the U.S. market. ZYN oral nicotine pouches, which have been available in the U.S. for over a decade, are a key component of PMI’s mission to offer legal-age smokers and traditional tobacco users a better alternative to continued smoking.

Philip Morris International, headquartered in Stamford, Connecticut, employs over 2,300 people through its U.S. affiliates. The company has been at the forefront of the smoke-free product movement, investing $12.5 billion globally since 2008 to develop and market innovative nicotine products that aim to reduce the harm associated with traditional tobacco use. PMI’s U.S. operations include the production of ZYN pouches at the Owensboro facility and HEETS, the consumable for the IQOS heated tobacco device, produced in Wilson, North Carolina. Swedish Match North America also maintains a regional office in Richmond, Virginia.