Philip Morris International's U.S. Businesses Invest $37 Million in Wilson, NC, Facility, Strengthening U.S. Manufacturing and a Smoke-Free Future

Rhea-AI Summary

Philip Morris International (NYSE: PM) has announced a $37 million investment in its Wilson, North Carolina manufacturing facility. The expansion will add a production line for TEREA, the consumables for the IQOS ILUMA heated tobacco system, pending FDA authorization.

The Wilson facility, which currently employs over 80 full-time staff, produces HEETS for IQOS 3.0, the only FDA-authorized modified risk tobacco product with reduced exposure claims. This investment is part of PMI's broader U.S. manufacturing expansion, which includes a $232 million investment in Owensboro, Kentucky, and a $600 million facility in Aurora, Colorado, collectively creating nearly 1,000 direct jobs.

The expansion reinforces PMI's commitment to advancing a smoke-free future by providing better alternatives to approximately 30 million legal-age consumers who smoke cigarettes in the U.S.

Positive

• Investment of $37 million strengthens U.S. manufacturing capacity
• Part of larger U.S. expansion totaling over $832 million across multiple facilities
• Creation of nearly 1,000 direct jobs through combined manufacturing projects
• Expansion supports production of FDA-authorized reduced-risk tobacco products

Negative

• Products still contain addictive nicotine and are not risk-free
• Business expansion dependent on pending FDA authorizations for new products
• Success contingent on adult smoker adoption and regulatory environment

Insights

Tobacco Industry Analyst

PMI's $37M Wilson investment advances smoke-free strategy, expands manufacturing for FDA-approved reduced-risk products, supporting long-term transformation.

This $37 million investment in PMI's Wilson facility represents a strategic expansion of the company's smoke-free product manufacturing capabilities in the U.S. market. The facility currently produces HEETS for IQOS 3.0—the only FDA-authorized modified risk tobacco product with reduced exposure claims—and will add production capacity for TEREA, the consumables for their next-generation IQOS ILUMA system.

The expansion is part of PMI's broader U.S. manufacturing investment strategy, which includes a $232 million expansion in Owensboro, Kentucky, and a $600 million manufacturing facility in Aurora, Colorado. Collectively, these larger investments will create nearly 1,000 direct jobs, making the Wilson expansion a smaller but integral piece of PMI's domestic manufacturing footprint.

What's particularly noteworthy is how this investment aligns with PMI's regulatory strategy. The company has already submitted premarket tobacco product applications and modified risk tobacco product applications for IQOS ILUMA to the FDA (October 2023), and this manufacturing expansion suggests confidence in eventual authorization. PMI is clearly preparing for commercial scale-up while navigating the complex U.S. regulatory environment.

This investment also signals PMI's commitment to its "smoke-free future" transformation. The company is gradually pivoting its business from traditional cigarettes toward heated tobacco products that, while not risk-free, have received FDA acknowledgment for reduced exposure to harmful chemicals. Currently, IQOS distribution remains limited to test markets in Austin, Texas, Jackson, Mississippi, and select military bases, indicating a measured approach to commercialization.

Wilson facility expansion supports the business's mission to deliver a smoke-free future by providing legal-age adults who smoke with better alternatives 

Reinforces PMI U.S.'s broader Invested in America platform to increase U.S. manufacturing and innovation capacity through strategic investment

WILSON, N.C., Oct. 2, 2025 /PRNewswire/ -- Philip Morris International's U.S. businesses (PMI U.S.) (NYSE: PM) today announced an investment of $37 million in their manufacturing facility in Wilson, North Carolina. The investment will support expanded operations in Wilson, generating economic activity in the community, reinforcing PMI U.S.'s long-term commitment to American manufacturing, and advancing PMI's mission of ending cigarette smoking by providing legal-age adults who smoke with better, smoke-free alternatives.

"Our U.S. manufacturing footprint is critical to producing innovative smoke-free alternatives for adult consumers," said Stacey Kennedy, PMI U.S. CEO. "We're proud to increase our investment in Wilson and spur further economic growth in the area."

"The Wilson Chamber of Commerce welcomes this expansion and what it means for the people of Wilson," said Ryan Simons, President of the Wilson Chamber of Commerce. "Our priority has always been to create a business environment that attracts forward-looking companies that foster U.S.-based economic activity and innovation. PMI U.S.'s investment here is further evidence that Wilson is a place where global companies can grow and thrive."

The Wilson factory, which employs more than 80 full-time staff, including supervisors, engineers, and lab technicians, currently produces HEETS for IQOS 3.0, the only heated tobacco product authorized by the U.S. Food and Drug Administration (FDA) as a modified risk tobacco product (MRTP) with reduced exposure claims.

The FDA determined that such authorization is appropriate for the promotion of public health. Although the product is not risk-free and contains nicotine, which is addictive, studies show that because IQOS heats tobacco instead of burning it, the device significantly reduces exposure to harmful and potentially harmful chemicals compared with combustible cigarettes for legal-age adult smokers who switch to IQOS completely.

IQOS 3.0 is currently being commercialized in Austin, Texas, and Jackson, Mississippi, as well as on selected military bases.

This investment in our Wilson facility will add a production line for TEREA, the consumables for the IQOS ILUMA heated tobacco system. Philip Morris International submitted premarket tobacco product applications (PMTAs) and MRTP applications for IQOS ILUMA to the FDA on October 20, 2023. We are preparing for the at-scale launch of IQOS ILUMA, pending FDA authorization.

The Wilson expansion builds on PMI U.S.'s investments in America's heartland, which already include hundreds of millions of dollars invested in U.S. manufacturing and innovation, such as the $232 million expansion announced in 2024 in Owensboro, Kentucky, and a $600 million investment to build a state-of-the-art manufacturing facility in Aurora, Colorado. These two projects, collectively, will create nearly 1,000 direct jobs.

Additional multimedia assets

To access b-roll footage of the Wilson manufacturing facility, please click here.

PMI U.S.: Invested in America

Philip Morris International Inc.'s U.S. businesses are invested in America's future and advancing a smoke-free nation. The businesses are committed to providing the approximately 30 million legal-age consumers who smoke cigarettes with better, smoke-free alternatives and to ensuring the products are marketed responsibly. From PMI's global headquarters in Stamford, Connecticut, and other locations nationwide, PMI U.S. contributes leadership, jobs, investment, and innovation in the U.S. The U.S. businesses employ more than 3,000 people across America and operate product manufacturing facilities, including in Owensboro, Kentucky, and Wilson, North Carolina. For more information, please visit www.uspmi.com. 

References to "PMI" mean the Philip Morris International family of companies. "PMI U.S.," "we," "our," and "us" refer to one or more PMI U.S. businesses.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and goals and other forward-looking statements, including statements regarding expected capital expenditures, business plans and strategies. Achievement of future results is subject to risks, uncertainties, and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco and/or nicotine use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; the impact of natural disasters and pandemics on PMI's business; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; if it is unable to attract and retain the best global talent; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products' performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the second quarter ended June 30, 2025. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

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SOURCE PMI US Corporate Services, Inc.

FAQ

What is the size of Philip Morris International's new investment in Wilson, NC?

PMI is investing $37 million in its Wilson, North Carolina manufacturing facility to expand operations and add a production line for TEREA, the consumables for IQOS ILUMA.

How many jobs does PMI's Wilson, NC facility currently provide?

The Wilson facility currently employs more than 80 full-time staff, including supervisors, engineers, and lab technicians.

What is PMI's total recent investment in U.S. manufacturing facilities?

PMI's recent U.S. investments total over $832 million, including $37 million in Wilson, NC, $232 million in Owensboro, KY, and $600 million in Aurora, CO.

What products are currently manufactured at PMI's Wilson facility?

The Wilson facility currently produces HEETS for IQOS 3.0, the only heated tobacco product authorized by the FDA as a modified risk tobacco product with reduced exposure claims.

How many new jobs will PMI's recent U.S. manufacturing investments create?

PMI's manufacturing investments in Owensboro, KY and Aurora, CO will collectively create nearly 1,000 direct jobs.