PMI Plans to Use Locally Grown Tobacco Leaves in Products

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PMI Plans to Use Locally Grown Tobacco Leaves in Products
PMI unveils plan to use local tobacco leaves in non-smoking products following $1.5 billion factory expansion in the Philippines.

According to a report by philstar on April 16, following an investment of 8.8 billion pesos (1.5 billion dollars) to expand its local subsidiary factory in the Philippines, Philip Morris International (PMI) plans to use locally produced tobacco leaves in its smoke-free products.


The CEO of PMI, Jacek Olczak, announced at the inauguration ceremony of a factory expansion in Batangas Province that they are considering starting production of smoke-free products using Philippine tobacco. He noted that the quality of tobacco leaves in the country is "becoming increasingly better."


PMFTC is a 50-50 partnership between PMI and Lucio Tan's Fortune Tobacco Corp. The expansion of PMFTC's factory will produce heating pods for the Blends brand, used in its smoke-free product line called Bonds. With this factory, PMFTC will locally produce all Blends pods sold in the Philippines. Additionally, the factory will also export Blends pods to nearby Asian countries.


IQOS Bonds are smoke-free products launched by PMI for adult smokers who want to continue smoking at a more affordable price.


Orchak stated that PMFTC has a tobacco demand of over $120 million. PMFTC currently focuses on purchasing local tobacco leaves and importing other types of e-liquid, blending them to achieve different mixtures for their cigarette products.


In every country where we operate, you will find Philippine tobacco in our products.


Orchard said that PMFTC's factory is expected to start operating within the year, opening up a future for tobacco farmers in the Philippines.


We are very satisfied with the regulatory and business environment in the Philippines, which is why we have decided to establish this manufacturing base here.


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