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PMI invests $232M to expand ZYN production in Owensboro, adding 450 jobs as part of its smoke-free future strategy.
Philip Morris International (PMI) is doubling down on its smoke-free strategy with a massive factory expansion in Kentucky. The tobacco giant is pumping $232 million into its Owensboro plant to ramp up production of ZYN nicotine pouches.
ZYN pouches are tobacco-free, fitting between the lip and gums to deliver nicotine without smoking. They're part of a booming market for cigarette alternatives.
"We are accelerating our mission toward a smoke-free future," says Stacey Kennedy, CEO of PMI's US business.
While pouches like ZYN are likely less harmful than cigarettes, long-term effects remain unclear. The FDA maintains no tobacco product is safe.
A 2022 study found low levels of harmful substances like ammonia and formaldehyde in ZYN pouches.
The expansion is set to create nearly 2,800 jobs during construction. Kentucky Gov. Andy Beshear praised PMI for "doubling down" on its investment in the state.
This expansion is part of PMI's broader strategy:
As cigarette sales decline, Big Tobacco is betting big on smoke-free alternatives. The Owensboro expansion shows PMI is all-in on this strategy. And with this investment, this could spell further opportunities for freight within this industry and region within the US.
As the Morning Brew put it:
Source: ABC News
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