18.2 C
Sunday, July 21, 2024
No menu items!
HomeLithuaniaPhilip Morris yet to decide on changes to Klaipeda plant's future

Philip Morris yet to decide on changes to Klaipeda plant’s future

As tobacco consumption habits are changing around the world, Philip Morris International, an international tobacco manufacturing and trading company, is yet decide on the future of its cigarette factory in Klaipeda, but the range of products here is expected to change.

Michal Mierzejewski, president of PMI for northeastern Europe, says the company hopes to earn 50 percent of its revenue from alternative products, such as heated tobacco products, by 2025.

“Klaipeda should be thinking about ways to change, how to switch to innovative products, but this decision depends not only on Philip Morris, but also on several other stakeholders, and we need to see if consumers are interested in products. In Lithuania, these products have been a great commercial success. We need clarity from state institutions as they need to look in the same direction,” Mierzejewski told reporters in Klaipeda on Wednesday, adding that shareholders will make the necessary decisions on the production facility’s transformation.

“For now, we are producing cigarettes here, but when and if Klaipeda will switch to new technology has not yet been decided,” Mierzejewski said.

The war in Ukraine led Philip Morris to close its factory in Kharkiv last year, but it is currently investing around 30 million US dollars into a new factory in Lviv, Mierzejewski said.

Philip Morris Lietuva made a net profit of 8.5 million euros last year, down 20 percent from 10.7 million euros in 2021, and its revenue grew 0.5 percent 78.8 million, euros, from 78.4 million euros.

Last year, the company produced 35 billion cigarettes, 5 percent more than in 2021.

The company exports 98 percent of products made in Klaipeda.

Source: BNS.

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)


Please enter your comment!
Please enter your name here


Most Popular

Recent Comments