Philip Morris International Says Part of Owensboro ZYN Output Is Exceeding Market Demand

Apr.23
Philip Morris International Says Part of Owensboro ZYN Output Is Exceeding Market Demand
Philip Morris International said its Swedish Match facility in Owensboro will adjust part of its production schedule this summer in response to changing market conditions. According to a notice the company gave union leadership and employees on April 22, parts of ZYN production will shift from a 24/7 schedule back to a 24/5 schedule. The ZYN Flagship department will return to a five-day, three-shift operation.

Key Takeaways

  • PMI U.S. told union leadership and employees on April 22 that part of ZYN production in Owensboro will shift from 24/7 to 24/5.
  • The change mainly affects the ZYN Flagship department, which will return to a five-day, three-shift schedule.
  • The company said recent market conditions mean the ZYN Flagship department is currently exceeding market demand.
  • The adjustment is targeted for implementation by July 6.
  • PMI said ZYN Ultra production and maintenance operations are expected to remain on a 24/7 schedule.

2Firsts, April,23 2026 

 

According to Owensboro Times, the Swedish Match facility in Owensboro will adjust part of its production schedule this summer. 

 

Philip Morris International U.S. officials said the company informed union leadership and employees on April 22 that portions of ZYN production will move from a 24/7 schedule back to a 24/5 schedule, in line with the default terms in the collective bargaining agreement.


The ZYN Flagship department will return to a five-day, three-shift operation


The report said the change primarily affects the ZYN Flagship department, which will return to a five-day, three-shift schedule. Company leaders said the adjustment is intended to rebalance production after a period of heightened demand and expansion.


The company said part of production is now exceeding market demand


In a letter to union officials viewed by Owensboro Times, PMI U.S. Vice President of U.S. Manufacturing Shane Dukes said PMI U.S. and the union share the same goal of producing the highest quality products to meet customer demand. He wrote that market conditions have recently changed and, as a result, the ZYN Flagship department is exceeding market demand.


Dukes said the company intends to implement the change by July 6.


The company said the move is not a closure or relocation


The report said the Owensboro facility had moved to continuous 24/7 production during a recent expansion period. PMI invested more than $230 million into the site in 2024, increasing capacity and creating about 450 jobs to meet surging demand for ZYN nicotine pouches.


Company officials said the current adjustment reflects a “normalization” following that ramp-up phase. In an emailed statement to Owensboro Times, a company spokesperson said the change is a production schedule adjustment driven by market conditions, not a facility closure or relocation, and that Owensboro remains central to PMI U.S.’s ZYN operations.


Not all operations will be affected


According to the letter, the change will not affect all operations. ZYN Ultra production and maintenance operations are expected to remain on a 24/7 schedule.


Under the revised plan, employees in affected departments will return to schedules set out in the collective bargaining agreement. The company said it will work with union leadership to address job assignments, seniority considerations and shift preferences during the transition.


The company said it is giving about 10 weeks’ notice


The report said Article V of the agreement requires at least one week’s notice for operational changes. In the letter, the company said it is providing about 10 weeks’ notice to allow employees time to prepare.


PMI also said in the letter that it may return the Flagship department to a 24/7 schedule in the future if market demand warrants.
Image Source:

Image Source: Owensboro Times

 

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