World News
Aurora selected new factory to make Zyn nicotine pouches
Philip Morris International has selected Aurora for a new factory to make the popular ZYN nicotine pouches, a product marketed to people who want to quit smoking or chewing tobacco.
PMI plans to invest $600 million in a new facility on vacant land at 48th Avenue and Harvest Road. When operational, the plant will employ 500 workers, earning an average annual wage of $90,000, according to the company.
“These 500 jobs are good jobs,” said Stacey Kennedy, CEO of PMI’s U.S. operations in Stamford, Conn., at a news conference held Tuesday morning at the Colorado Freedom Memorial in Aurora.
Groundbreaking should take place later this year, with completion late next year and production in early 2026. The company already has a few vacancies posted online for the Aurora facility, with more available as construction nears completion next year.
“This project marks a significant investment in PMI’s vision for a smoke-free future,” said Kennedy.
Given the pouches’ popularity, the 500 jobs could be a starting point, and Kennedy said the investment should deliver $550 million in ongoing benefits to the area’s economy.
“PMI is making a significant investment in our community in several ways,” Aurora Mayor Mike Coffman said at the conference.
ZYN is an oral sachet that contains nicotine salts with different flavors, such as citrus, coffee and spearmint. Although it is not a tobacco product per se, US regulators are monitoring it and are concerned about teens and children may develop a substance use disorder while using nicotine pouchesthat have become popular among Generation Z.
PMI said it strictly limits sales to people 21 years or older and does not use social media influencers to promote its product or include people under 35 in its marketing materials in the US. Sellers must use independent age verification systems such as ‘Double Verify’.
The U.S. has about 30 million smokers and the pouches have become popular among those trying to quit tobacco, so much so that a ZYN factory in Owensboro, Kentucky, is struggling to meet demand. Swedish Match, which acquired PMI in 2022, opened that factory in 2016.
Kennedy said Colorado was one of seven states the company was considering for expansion. The country rose to the top based on the economic opportunities it offered and its leadership in public health.
Spun off from Philip Morris USA and parent company Altria in 2008, PMI claims to have never sold a cigarette in the United States, although it sells them in 180 countries and controls the Marlboro brand abroad. Domestically, PMI has focused on smoking cessation products, spending $12.5 billion on research and product development in that area.
The company is introducing its latest version of the IQOS electronically heated tobacco devices in the US, which has drawn criticism from health and anti-tobacco advocates.
The PMI plant represents a new kind of manufacturing win for Colorado, which in recent years has attracted battery and semiconductor makers looking to take advantage of federal tax breaks.
Aurora provided $7.1 million in tax credits to PMI for the new plant, while the Colorado Economic Development Commission approved $4.5 million in tax credits for job growth and Adams County secured another $4.3 million, said Yurly Gorlov, deputy president of the Aurora Economic Development Council. .
Working in Aurora’s favor was the availability of a plot ready for development, Gorlov said. The package PMI selected is among a handful of Xcel Energy-certified locations available. The electricity supply for the location had already been planned, allowing for a shorter lead time.
Governor Jared Polis, who also spoke at the news conference, listed three advantages Colorado had in beating other states. Firstly, there were logistics and accessibility via rail, air and truck routes. The state’s workforce is also a draw, and Polis noted that recently passed legislation will make tuition free for residents making less than $90,000 a year, starting this fall.
He also mentioned a 15% to 20% reduction in the state’s commercial property tax rate, which could impact more location decisions by companies looking to invest in the state for the long term.
Kennedy said PMI plans to make significant philanthropic contributions valued at $2.5 million with a focus on military veterans in the state, including $350,000 over two years to the Rocky Mountain Veterans Advocacy Project, a legal clinic; $100,000 to the Veterans Community Project, and additional donations to Colorado Gold Star Mothers, the Colorado Freedom Memorial, Hire Heroes USA, Soldier’s Angels and Musicians on Call for Veterans Administration hospital visits.
The company has also committed $250,000 annually for the next eight years to support a flexible housing fund for transitional housing in Aurora and Adams County.
Get more business news by signing up for our Economy Now newsletter.
Originally published:
