PMI Invests Nearly $260 Million for Factory Modernization

Apr.03.2025
PMI Invests Nearly $260 Million for Factory Modernization
Philip Morris International (PMI) completes nearly $260 million investment in Krakow factory, creating over 300 new jobs.

Key takeaways:

Philip Morris International's (PMI) Polish subsidiary has completed a nearly 1 billion Polish Zloty (260 million US dollars) investment for the modernization of its factory in Krakow, creating over 300 new jobs.

The factory has added a new heated stick production line to produce specialized sticks for the IQOS ILUMA i.

The CEO of PMI's Northeast Europe region stated that the company is transitioning from a traditional cigarette manufacturer to a producer of new tobacco products. Since the launch of IQOS, global cigarette sales have decreased by 28%.


According to Polanddaily24 on April 3rd, Philip Morris International (PMI) Poland's subsidiary (Philip Morris Polska Distribution Sp. z oo) has completed a nearly 1 billion Polish zloty (2.6 million USD) investment in their Kraków factory for modernization. This investment has created over 300 new jobs in Kraków.

 

This investment enables the factory to produce heating sticks for the latest IQOS ILUMA i. It is worth noting that the sticks use tobacco locally grown in Poland. Over the past decade, PMI has directly purchased over 40,000 tons of tobacco from Polish farmers.

 

The modernization of PMI's factory in Krakow includes a new production line for heating sticks. These sticks are not only distributed in the Polish market, but also exported to international markets including European Union countries and Asia, with Japan being a key destination. IQOS devices were first launched globally in Japan in 2014.

 

PMI Northeast Europe President Michał Mierzejewski stated,

 

Compared to other tobacco companies, we are gradually phasing out cigarettes faster on a global scale. Since the launch of IQOS, we have reduced cigarette sales volume by 28% in the global market. Now, our Krakow factory has also joined the forefront of global transformation, transitioning from a cigarette manufacturer to a manufacturer of smoke-free products.

 

PMI has invested over $14 billion in scientific research, technological development, and the commercialization of new tobacco products. The development of heat-not-burn tobacco in IQOS has benefited from collaboration with engineers from the International Tobacco Machinery company (ITM) in Lodz, Poland. Currently, PMI's new tobacco products are being sold in 95 markets worldwide.

 

According to international estimates, there are still over one billion people worldwide who smoke. In Poland, the number of smokers exceeds eight million.

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

 Philip Morris Lowers Profit Outlook as Zyn Faces Competition and FDA Delays
Philip Morris Lowers Profit Outlook as Zyn Faces Competition and FDA Delays
According to Reuters, Philip Morris International (PMI) lowered its 2026 adjusted earnings-per-share forecast amid regulatory uncertainty around Zyn nicotine pouches, rising competition and shipment pressure in the U.S. market.
PMI
Jun.02
Vuse Alto Adds New U.S. Price Tier as BAT Pushes Deeper Into Mass-Market Vaping
Vuse Alto Adds New U.S. Price Tier as BAT Pushes Deeper Into Mass-Market Vaping
British American Tobacco (BAT) subsidiary Vuse Alto has recently adjusted its price tiers in U.S. convenience store channels, leveraging low-cost device kits and pod promotions to reinforce its positioning in the mid-priced closed-system e-cigarette market.
Jun.17
Australia Quantifies Black Market for First Time, Illicit Nicotine Products Account for About 80% of Consumption
Australia Quantifies Black Market for First Time, Illicit Nicotine Products Account for About 80% of Consumption
The Australian Bureau of Statistics (ABS) has released its first estimate of the illicit nicotine market, finding that about 80% of cigarettes, vapes and other nicotine products consumed in 2025 came from illegal sources, reigniting debate over tobacco taxation and enforcement policies.
Jun.03
UK Disposable Vape Ban Marks One Year as Adult Use Falls to 8% and Youth Use to 13%
UK Disposable Vape Ban Marks One Year as Adult Use Falls to 8% and Youth Use to 13%
One year after the UK ban on single-use disposable vapes took effect, YouGov data commissioned by Action on Smoking and Health shows that 13% of 11-17-year-old vapers and 8% of adult vapers now mainly use disposable products.
Jun.18
Philip Morris Romania Expands IQOS Boutique Network to 120 Locations With Retail 2.0 Store
Philip Morris Romania Expands IQOS Boutique Network to 120 Locations With Retail 2.0 Store
Philip Morris Romania has opened IQOS Boutique Victoriei in Bucharest, expanding the country’s IQOS retail network to 120 points of sale and advancing a Retail 2.0 concept that combines design, technology, interactive art and urban culture.
PMI
Jul.13
Hawaii Restricts Vape Sales to FDA-Authorized Products, Disposable E-Cigarettes to Be Banned
Hawaii Restricts Vape Sales to FDA-Authorized Products, Disposable E-Cigarettes to Be Banned
Hawaii has enacted two new e-cigarette laws that significantly tighten market access requirements, requiring products to meet FDA authorization standards and banning disposable e-cigarette sales starting in 2027.
Jul.08