Philip Morris International invests USD 30 million into new production facility in Ukraine

Factory will be located in the Lviv Region and create over 250 jobs in the region

Kyiv, June 20, 2023. Philip Morris Ukraine (“PMU”) today announces that Philip Morris International (“PMI”) is investing over USD 30 million to establish a new production facility in the Lviv region, in western Ukraine. This investment will enable the company to fully meet domestic demand, generate hundreds of new jobs, and support Ukraine’s current and future economic growth.

Preparatory work for the new factory will begin in July 2023, and we expect to begin production in Q1 2024. The new factory will employ over 250 people, primarily in manufacturing. Employment will be offered to PMU employees from our Kharkiv factory first.

Massimo Andolina, President Europe Region at Philip Morris International, said: “We are proud to announce this new investment in Ukraine. Our new facility will ensure a reliable product supply for Ukraine and employment opportunities for the people of Ukraine. But this is more than a simple investment into our company’s infrastructure and capabilities; this is a demonstration of our commitment to Ukraine and to its people. This investment is a powerful signal to other international investors—a signal of confidence in Ukraine’s economy, confidence in the Ukrainian people, and confidence in Ukraine’s future.”

Maksym Barabash, Managing Director of Philip Morris Ukraine, said: “By opening this new facility, we once again demonstrate our support for Ukraine. This investment embodies our commitment as a long-term economic partner. The new production at the location proposed by UkraineInvest will create jobs, satisfy the demand of the Ukrainian market with high-quality products, and support the economy in a tough time for the country. We are not waiting for the end of the war; we are investing now.”

Notes to Editor

Philip Morris International (PMI) is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested more than USD 10.5 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioural research, as well as post-market studies.

As of March 31, 2023, PMI's smoke-free products were available for sale in 78 markets, and PMI estimates that approximately 18.5 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 35% of PMI’s total 2023 first-quarter net revenues.

Since first entering the Ukrainian market in 1994, PMU has invested more than USD 700 million into the economy. In 2022, PMU paid UAH 25.3 billion in taxes in Ukraine.

From the beginning of the full-scale war in Ukraine, a stable source of supply to the country was ensured through import from eight other PMI factories and a temporary partnership with a third-party manufacturer. To this day, Philip Morris Ukraine continues to pay salaries and provide accommodation where needed for the 650 Kharkiv factory employees and for many of their family members displaced in Ukraine and abroad.

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