Philip Morris Korea To Launch Locally Produced Tobacco For IQOS

Source from:  Yonhap News 05/23/2018

Philip Morris Korea Inc. said Wednesday that tobacco sticks for its heated electronic cigarettes that are produced in South Korea will hit shelves within the year amid soaring popularity among smokers.

The Korean unit of global tobacco maker Philip Morris International Inc. said Heets will be produced at its factory in Yangsan, 420 kilometers southeast of Seoul. The factory will be the first facility in Asia to manufacture heated tobacco units for IQOS.

In December, Philip Morris Korea announced its plan to invest US$420 million by 2019 to expand its local facilities and hire 700 new employees. Of the planned investment, $200 million has already been injected, with the hiring of 470 employees to be completed by the end of the year, it said.

The announcement came as an increasing number of South Korean smokers are switching to smoke-free products since Philip Morris' IQOS first hit the domestic market in June 2017. The market share of Heets was reported at 7.3 percent in the first quarter of the year, placing it in the top five tobacco brands in the country, it said.

"I am pleased to see that our vision to replace cigarettes with science-based smoke-free products is becoming a reality in Korea at an unprecedented speed," said Chong Il-woo, Philip Morris Korea's managing director, during a press conference in Seoul.

Meanwhile, the company expressed concern after the government unveiled its plan to adopt pictorial health warnings for heated tobacco products starting at the end of the year.

"The proposed warnings are inappropriate and misleading, not only would they confuse current heated tobacco product users, but they would also have a negative impact on those adult smokers considering switching to better alternatives," said Nikolaus Ricketts, director of Reduced Risk Products for the firm.  Enditem