Philip Morris to invest $232 million in expanding ZYN production at Kentucky plant, reports One America News Network
OAN Staff James Meyers
9:10 AM – Wednesday, August 28, 2024
Philip Morris International (PMI) has announced they are making a major investment of $232 million to expand production capacity for ZYN nicotine pouches at its Ownesboro, Kentucky plant, to help meet the strong demand.
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The investment will be made through one of PMI’s Swedish Match affiliates, and comes just one month after the tobacco giant announced an investment of $600 million to open a ZYN manufacturing facility in Colorado.
Meanwhile, shipments of ZYN slowed to a growth of 54% in the second quarter, as higher demand for the product caused short-term supply chain constraints and impacted value growth.
ZYN, is considered an alternative to traditional chewing tobacco products. It’s a nicotine pouch that does not contain tobacco, according to Philip Morris.
In 2022, Philip Morris bought ZYN-parent Swedish Match in a $16 billion deal as tobacco companies have been continuing to find alternatives to traditional tobacco products in their product, amid greater health awareness and stricter regulations.
In June, PMI suspended online sales at ZYN.com across the U.S. after it received a subpoena from the District of Columbia requesting information about its compliance with D.C. ‘s 2022 ban on the sale of all flavored tobacco.
Additionally, there were concerns that illicit sales of ZYN, amid supply gaps, could drop the numbers for PMI during the company’s second-quarter conference call in July.
Furthermore, construction for the expansion of the facility in the Bluegrass State has been underway, and PMI has stated they expect it to be completed by the second quarter of 2025.
To help increase production, the facility will begin operating on a 24-hour, seven-days-a-week basis starting from the fourth quarter this year, according to PMI.
The company also stated in July that the expansion was expected to provide around 900 million cans of capacity for ZYN for 2025.
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