€65 million investment in the production of processed tobacco for the Company’s innovative heated tobacco products potentially generating work for up to 70 people
On Friday June 10, Philip Morris Holland B.V. (“PMH”) announced Philip Morris International’s contemplated decision to re-utilize part of the available site in Bergen op Zoom. Following the cessation of the cigarette production at the Bergen op Zoom site in September 2014, this is good news for PMH and the Region.
Philip Morris International Inc (“PMI”), PMH’s parent company, is planning to invest €65 million in Bergen op Zoom to install two new production lines for the manufacturing of the tobacco sheet used in its “HeatSticks”, an innovative heated tobacco product specially designed for use with its electronic device, “iQOS”. iQOS, a device based on technology to heat rather than burn tobacco, is one of a range of Reduced Risk Products (RRPs)* that PMI is developing and commercializing. PMH expects the new production lines to be operational in 2018 with the potential to generate work for up to 70 people. Preparations for the installation of the lines are expected to start in the very near future.
PMI is currently commercialising iQOS nationwide in Japan and in key cities in other countries such as Switzerland, Italy, and Portugal. PMH is delighted that PMI contemplates an important role for the site in Bergen op Zoom to meet the growing international demand for this product.
The development and commercialisation of RRPs is a top priority for PMI. It is PMI’s ambition to encourage all current adult smokers that intend to continue smoking to switch to RRPs as soon as possible. PMI is conducting extensive scientific studies to assess the risk reduction potential of its RRPs and its research is well advanced. While conclusions on the risk reduction profile of iQOS will be based on the totality of the evidence, results of laboratory-, clinical-, and other studies conducted to date are very encouraging. For example, PMI has already determined that the levels of harmful and potentially harmful compounds in the aerosol generated by iQOS are, on average, 90% to 95% lower than in a standard reference cigarette designed for scientific research purposes. For further information on PMI’s harm reduction approach, please visit: www.pmiscience.com
*Reduced-Risk Products (“RRPs”) is the term the company uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes. PMI’s RRPs are in various stages of development and commercialization, and we are conducting extensive and rigorous scientific studies to determine whether we can support claims for such products of reduced exposure to harmful and potentially harmful constituents in smoke, and ultimately claims of reduced disease risk, when compared to smoking cigarettes.
Information concerning the current activities of Philip Morris Holland in Bergen op Zoom
Following the cessation of cigarette production at the Bergen op Zoom site in September 2014, PMH has utilized the site for logistical purposes and for the production of semi-finished manufactures, including liquids for electronic cigarettes. Currently, PMH employs 187 Full Time Employees on its site in Bergen op Zoom. Approximately an additional 250 persons are engaged through third party operators.
