Retail News South Africa

PMI to invest $320m into German Heets production facility

Philip Morris International (PMI) will invest approximately $320 million 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. Operational in early 2019, the factory is expected to employ about 500 people.
PMI to invest $320m into German Heets production facility

IQOS and Heets have been available for adult smokers in Germany since June 2016, starting with pilot commercialisation in Munich, Frankfurt and Berlin. IQOS is currently available in key cities in more than 25 markets around the world.

AndrĂ© Calantzopoulos, PMI’s CEO, said, “This investment represents another step towards a future in which smoke-free products replace cigarettes. Already, over two million people have given up smoking and switched to IQOS and we know this is just the beginning. We are fully committed to meet smoker demand for potentially less harmful alternatives to cigarettes.”

Frederic de Wilde, president of PMI’s European Union Region added, “We are encouraged by the successful launch of IQOS in Germany and its performance in other European countries. Europe has become a hub for PMI’s research, development and investment in better alternatives to cigarettes.”

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.

According to PMI, the South African launch of IQOS marked a major milestone in achieving the company’s objectives of a smoke-free future, with South Africa being the first market in Africa where IQOS has been made available.

IQOS is one of four smoke-free product platforms that PMI is developing to address adult smoker demand for better alternatives to cigarettes.

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