Philip Morris to build nicotine pouch production facility in Aurora

By: Trademagazin editor Date: 2024. 08. 12. 09:52

Philip Morris International announced plans last week to invest $600 million over the next two years to open a manufacturing facility in Aurora that will produce Swedish Match ZYN nicotine pouches.

The company 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 and expects the construction phase of the project to create nearly 5,000 jobs related to the building of the facility.

Swedish Match North America is also currently working to increase ZYN oral nicotine pouch production 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.

Philip Morris first entered the U.S. market following its acquisition of Swedish Match in late 2022. Swedish Match’s ZYN oral nicotine pouches have been on the market in the U.S. for more than a decade and are designed as a better option for legal-age consumers who smoke and wish to continue using nicotine.

Philip Morris is headquartered in Stamford, Connecticut. Its U.S. affiliates have more than 2,300 employees. The company’s U.S. affiliates operate smoke-free product manufacturing facilities including the Swedish Match North America Owensboro, Kentucky plant that makes ZYN nicotine pouches and a facility in Wilson, North Carolina that produces HEETS, the consumable for the IQOS heated tobacco device. Swedish Match North America has a regional office in Richmond, Virginia.

The Aurora facility is expected to create 500 direct jobs with ongoing annual economic impact of $550 million and an additional 1,000 indirect jobs for Colorado, according to an economic analysis study by EConsult Solutions, a Philadelphia-based consulting firm.

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