Femo International announced that it will invest $232 million to expand its nicotine pouch manufacturing plant in Owensboro, Kentucky, USA. The expanded plant will operate five days a week and every day. The 24-hour workday will be replaced with a seven-day-a-week, daily, 24-hour workday, and the plant is expected to provide approximately 9 production capacity billion cans by 2025.
Philip Morris International is investing $232 million to expand its U.S. plant
On August 27, the official website of Philip Morris International (PMI) (NYSE: PM) announced that it would use its German match subsidiary to invest $232 million in the expansion of a plant that produces cigarette tar pouches in Owensboro, Kentucky, USA. The company claims this is part of its strategy to move towards a so-called “smoke-free future”.
The company says it expects the expansion to add 450 jobs and increase the plant’s labor force by about 40% to meet the growing demand for smokeless goods.
Construction of the Owensboro plant is underway and is expected to be completed in the second quarter of 2025. The expansion phase is expected to create nearly 2,800 jobs, resulting in an economic impact of 414 million dollars.
Additionally, the expanded plant is changing from a five-day, 24-hour work week to a seven-day. 24-hour work week to increase productivity.
The implementation of a 24/7 production model has an annual capacity of 900 million cans
Currently, the Owensboro plant employs approximately 1,100 people, and the plant’s continued expansion is expected to provide approximately 9 billion cans of production capacity by 2025.
PMI CEO Stacey Kennedy, who oversees U.S. operations, said in a statement.
- “We are accelerating our mission for a smoke-free future, working with our U.S. Subsidiaries to move adults away from traditional cigarette products like tobacco and provide better alternatives.”
Gov. Andy Beshear, R-Ky. (Andy Beshear) said:
- “Fillmore International’s German Match subsidiary has been a key partner and job creator in the region for many years. I’m thrilled to see this incredible new investment and the new investment it creates for families in and around Owensboro. 450 A great job creator. Our economy continues to set records. Today’s announcement shows that we are creating jobs for our people, not putting them to work. I want to thank and congratulate the company’s leaders for their continued efforts in the Commonwealth and look forward to more prosperity in the future.”
In July of this year (2024), PMI announced that it will utilize its U.S. branch to invest over the next two years. 6 $100 million to open a nicotine bag manufacturing facility in Aurora, Colorado.
The new plant and the Owensboro expansion will provide capacity for ZYN’s short- and medium-term needs in the U.S. market.
