Philip Morris to invest EUR 490 mln in Otopeni factory, hire 300 by end 2018

Georgeta Gheorghe 25/07/2017 | 14:30

Philip Morris announced today plans to invest EUR 490 million in transforming its Otopeni factory into one that produces exclusively HEETS for its heat-not-burn product IQOS by 2018. The company will also hire 300 new staff for the factory, the group’s best performing worldwide. 

The announcement was made in the presence of Romanian PM Mihai Tudose. “What Philip Morris did for Romania stresses something that has started to be acknowledged: Romania is an attractive country for investments, the big investments. It is a statement also for those who are already in Romania about the country’s stability, its attractiveness for investments, but also for the potential investors,” the Romanian PM said at Together for Romania, the event organised by Philip Morris International at Bucharest’s National Theatre.

“Late last year Philips Morris CEO Andre Calantzopoulos defined a bold vision by saying our ambition was to replace conventional cigarettes with no smoke products,” Christos Harpantidis, managing director Philip Morris Balkans said at the event. “What was considered by some a revolutionary statement, is something we’ve been working on for many years. Starting 2008, when Philip Morris started to research, USD 3 billion have been invested. We are one step closer to our smoke free vision and today’s announcement is an important step towards this direction”, Harpantidis added.

“Otopeni is one of our most effective factories worldwide and the fact that it was chosen shows our commitment to Romania. It will be completed by 2018. Once completed, we estimate that it will employ 950 people. We are delighted that we are expanding our footprint in Romania and keeping on investing in a country we believe in.”

According to Philip Morris representatives, most of the production output will serve international markets, contributing in a substantial way to Romania’s exports. Otopeni will be the first factory that will be converted and will be globally ready to make the company’s HEETS product for IQOS.

The transformation of the factory is scheduled to start this year. The biggest part of the investment will be spent on new machinery, construction, building development of wastewater treatment. Company representatives predicted that the 300 new jobs will be created over 2 years, with the first wave of new employees coming in this year.

“We never asked for state aid for this investment, we are happy with the investment climate we have and general support in our business and especially during the preparation phase of this investment. Ultimately, our vision is to change all conventional smokers to no smoke alternatives”, Harpantidis said.

BR Magazine | Latest Issue

Download PDF: Business Review Magazine March (II) 2024 Issue

The March (II) 2024 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “BAT DBS Romania Hub: A Vibrant New Office For An Employee-Centric
Georgeta Gheorghe | 27/03/2024 | 17:32
Advertisement Advertisement
Close ×

We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

Accept & continue