Cigarette Manufacturers to Pivot to E-Cigarettes

By Editorial Team 13/01/2023
e-cigarette vs cigarette
Summary

PT HM Sampoerna Tbk (HMSP) inaugurated the first production and export facility for the smoke-free tobacco product HEETS and its supporting device IQOS in Karawang, West Java, on Thursday. The US$186-million factory, owned by Sampoerna's controlling shareholder Philip Morris International (PMI), is the first of its kind in Southeast Asia and the seventh in the world. "Sampoerna's investment is expected to have a positive impact in encouraging innovations," Economy Coordinating Minister Airlangga Hartarto said.

Sampoerna started building the factory at the end of 2021 and operating it in the fourth quarter of 2022. It poses as PMI's production base to meet Asia-Pacific demands. "We hope to continue contributing to the Indonesian economy through sustainable investment and affect the national tobacco industry chain," Sampoerna president director Vassilis Gkatzelis said. Apart from building a new factory, Sampoerna also vows to keep increasing added value which includes boosting the research capacity, hiring skilled workers, purchasing local tobacco, and ramping up exports.

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