Philip Morris International doubles Colorado campus investment to $1.2 billion

Philip Morris International announced on Monday that it is doubling its planned investment in its Colorado manufacturing campus to approximately $1.2 billion through 2028. This expansion is driven by the growing demand for its Zyn nicotine pouch business and aims to increase production capacity.

The company had initially announced a $600 million investment in 2024 for a manufacturing facility in Aurora, Colorado, which opened on Monday. The expanded facility will not only produce Zyn nicotine pouches for the U.S. market but will also support exports to Asia, Latin America, and the Caribbean.

Philip Morris International stated that once fully operational, the facility is expected to generate about $550 million in annual economic impact and support 1,000 indirect jobs. The Aurora campus will complement the company's existing nicotine manufacturing operations in Owensboro, Kentucky, and Wilson, North Carolina.

Nicotine pouches are identified as the fastest-growing nicotine product in the U.S., contributing significantly to Philip Morris's sales and growth in smoke-free products, which include the heated tobacco device IQOS and vapes. The increased investment follows the U.S. Food and Drug Administration's recent authorization of 20 Zyn nicotine pouches as less harmful than cigarettes, enabling the company to market them with reduced-risk information.

In July, Philip Morris International reported that its second-quarter earnings exceeded estimates, largely due to strong demand for its smoke-free product offerings.