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May 24, 2019

PMI Opens Pilot Plant and Celebrates Groundbreaking on Construction of New Manufacturing Facility for Potentially Reduced-Risk Products

€500 Million Investment and 600 Jobs to Be Created

BOLOGNA, Italy--(BUSINESS WIRE)--Oct. 10, 2014-- Philip Morris International Inc. (“PMI”) (NYSE / Euronext Paris: PM) today officially opened its first pilot plant for the production of potentially reduced-risk products (“RRPs”*). The pilot plant, just outside Bologna in Zola Predosa, is now in operation, while PMI's first manufacturing facility for larger scale production of RRPs is currently under construction in Crespellano and is expected to be fully operational by the end of 2016. Together the factories represent an investment of up to €500 million and the creation of 600 jobs. Combined annual production capacity is expected to reach up to 30 billion units.

“This is a historic milestone in PMI’s strategic commitment to harm reduction by bringing to market potentially reduced-risk products,” said André Calantzopoulos, PMI’s Chief Executive Officer. “Our decision to invest in Bologna and in Italy reflects our confidence in the potential of our new technologies and our belief that these innovations represent a potential paradigm shift for our industry, public health and adult smokers.”

“With this investment in Bologna we are further expanding our long-standing presence in Italy and re-affirming our commitment to the local economy,” added Eugenio Sidoli, President and Managing Director of Philip Morris Italy. “I am confident that with the great infrastructure available in the region, and above all, the exceptional talent and commitment of our employees, Italy will continue to be a significant pillar of PMI’s success.”

The pilot plant inauguration and the progress on construction of the new factory were celebrated during an event held in Zola Predosa, attended by more than 200 guests, including Prime Minister Renzi and other government representatives, Members of Parliament, representatives of regional authorities and employees.

The event opened with the “signature of the first stone" by Prime Minister Renzi, André Calantzopoulos and Eugenio Sidoli. The stone will become part of PMI’s first factory in Crespellano which will produce potentially reduced-risk products on a larger scale for Italy and for other markets around the world.

The pilot plant, which was built in less than a year, has resulted in the creation of approximately 50 new jobs to date and will serve as the production facility for pilot city tests and initial market launches. It is now fully operational and has already completed the first production cycle that will supply PMI’s first pilot city tests in Milan, Italy and Nagoya, Japan later this year.

Philip Morris International Inc.

Philip Morris International Inc. (PMI) is the leading international tobacco company, with seven of the world's top 15 international brands, including Marlboro, the number one cigarette brand worldwide. PMI's products are sold in more than 180 markets. In 2013, the company held an estimated 15.7% share of the total international cigarette market outside of the U.S., or 28.3% excluding the People's Republic of China and the U.S. For more information, see

* “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 combustible cigarettes. PMI’s RRPs are in various stages of development 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 combustible cigarettes. Before making any such claims, we will need to rigorously evaluate the full set of data from the relevant scientific studies to determine whether they substantiate reduced exposure or risk. Any such claims may also be subject to government review and approval, as is the case in the United States today.

Source: Philip Morris International

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