Philip Morris to build smoke-free product facility in Germany
Philip Morris International announces plans to invest approximately $320M in a new high-tech facility in Dresden, Germany, to produce HEETS, the tobacco units to be used with the electronic tobacco heating device IQOS. Construction of the 80,000 m2 facility is scheduled to begin in late 2017. Once fully operational in early 2019, the factory is expected to employ about 500 people. IQOS and HEETS have been available for adult smokers in Germany since June 2016, starting with pilot commercialization in Munich, Frankfurt and Berlin. IQOS is currently available in key cities in more than 25 markets around the world. With this announcement, Germany will join a growing list of countries where PMI manufactures tobacco units for IQOS, including Italy and Switzerland. In addition, PMI recently announced the conversion of the cigarette manufacturing facility of its affiliate in Greece. By the end of 2018, PMI plans to have a total annual installed capacity of heated tobacco units of approximately 100 billion units. IQOS is one of four scientifically substantiated smoke-free product platforms that PMI is developing to address adult smoker demand for better alternatives to cigarettes.