Philip Morris International is injecting $232 million into its Kentucky facility to ramp up production of nicotine pouches, a move made as it transitions toward a "smoke-free future." The expansion at the Owensboro's Swedish Match plant will generate 450 jobs, increasing the workforce by around 40% to cater to the surging demand for smoke-free products such as ZYN nicotine pouches.
ZYN, a tobacco-free nicotine pouch product, is marketed to adult tobacco users and is rapidly becoming the most dynamic segment within the tobacco industry's portfolio. The pouches, which contain nicotine powder and are inserted between the lip and gums and discarded once its contents dissolve, avoid many of the harmful components of cigarettes and chewing tobacco. But US regulators still categorize them as tobacco products.
Construction at the Owensboro facility, which is located 106 miles southwest of Louisville, is slated for completion by mid-2025. The expansion project promises nearly 2,800 construction jobs and will see the facility transition to a 24/7 operational schedule from its current 24-hours, five days a week schedule. The Owensboro site and a new $600 million facility in Aurora, Colorado, announced in July aim to meet rising demand for ZYN pouches in the US. Kentucky Gov. Andy Beshear commended PMI for its significant reinvestment in the state. (This story was generated by Newser's AI chatbot. Source: the AP)
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