The Investment Whisperer
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Investment Whisperer

Business

Philip Morris to invest $232 million to expand ZYN production at Kentucky plant

by admin August 30, 2024
August 30, 2024
Philip Morris to invest $232 million to expand ZYN production at Kentucky plant

Philip Morris International said on Tuesday it would invest $232 million to expand production capacity for ZYN nicotine pouches at its Ownesboro, Kentucky plant, to meet the strong demand.

The investment will be made through one of PMI’s Swedish Match affiliates, and comes about a month after the tobacco giant announced an investment of $600 million to open a ZYN manufacturing facility in Colorado.

Shipments of ZYN slowed to a growth of 54% in the second quarter, reported in July, as demand for the product created short-term supply chain constraints and impacted volume growth.

ZYN, an alternative to traditional chewing tobacco products, is a nicotine pouch, which, according to Philip Morris, does not contain tobacco.

Philip Morris bought Zyn-parent Swedish Match in a $16 billion deal in 2022, as tobacco companies vied for alternatives to traditional tobacco products in their portfolio amid greater health awareness and stricter regulations.

In June, PMI suspended online sales at ZYN.com across the U.S. after it received a subpoena from the District of Columbia requesting information about its compliance with D.C.’s 2022 ban on the sale of all flavored tobacco.

There were also concerns that illicit sales of ZYN — amid supply gaps — could chip away at the numbers for PMI during the company’s second-quarter conference call in July.

Construction for expansion of the Kentucky facility was underway, and PMI expects to complete it by the second quarter of 2025.

In order to boost production, the facility will operate at a 24-hour, seven-days-a-week basis starting from the fourth quarter this year, PMI said.

The company had said in July the expansion was expected to provide around 900 million cans of capacity for ZYN for 2025.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Ford joins list of companies walking back DEI policies
next post
Top 11 Countries by Rare Earth Metal Production (Updated 2024)

Related Posts

Here’s how Starbucks plans to improve its stores

July 3, 2024

Sports streaming venture from Fox, Disney and Warner...

August 2, 2024

Darden Restaurants sales disappoint as Olive Garden, LongHorn...

March 21, 2025

Essence Fest leads a summer of events for...

July 4, 2025

Tesla asks shareholders to vote again on Musk’s...

April 19, 2024

Bitcoin approaches new all-time high after surpassing $65,000

March 5, 2024

Becoming a nurse during Covid, a former producer...

July 9, 2024

How immigrants are helping boost the U.S. job...

April 8, 2024

Trump and Japan tech conglomerate SoftBank announce $100...

December 17, 2024

The plane that crashed in South Korea is...

January 3, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (1,487)
    • Investing (3,803)
    • Politics (5,096)
    • World (4,762)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheInvestmentWhisperer.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 TheInvestmentWhisperer.com | All Rights Reserved