Philip Morris breaks ground for new Subic warehouse

SUBIC BAY FREEPORT , Philippines  — Philip Morris Philipppines International Inc. (PMMI) broke ground yesterday for the second phase of a P1-billion tobacco leaf warehouse project here to expand its handling capacity for regional distribution in Asia.

PMMI managing director Chris Nelson said at the groundbreaking rites that the construction of the new warehouse is expected to be finished in July this year.

In a press briefing, Nelson said that the new facility will significantly increase the tobacco leaf handling capacity of its present warehouse to up to 14,000 metric tons.

“The new warehouse stands on a 20,000-square meter lot out of almost five-hectare land area that we leased from SBMA for 50 years,” Nelson said.

In January 2008, Philip Morris opened the first phase which was a 10,000-square meter facility that can accommodate 6,100 metric tons of tobacco leaf.

 “In the future, we could further expand the warehouse facility to handle 24,000 metric tons to tobacco depending on the region’s demand,” Nelson said.

“What we are groundbreaking today is actually the phase II of our investment here in Subic,” Nelson said.

Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga, SBMA Administrator Armand Arreza and Subic Techno Park President Ichiro Tsuji joined Nelson in the groundbreaking ceremony signaling the start of the project.

Arreza said that the entry of Philip Morris in Subic Freeport is “a clear vote of confidence” of investors to the government.

“We are in no doubt that more multi-national firms would consider Subic for its logistics operations,” Arreza said.

The new warehouse will have state-of-the-art features such as humidity control, fire suppression equipment and air conditioning to handle the imported tobacco leaf from China, Indonesia, Thailand and India, which will be used by Philip Morris manufacturing facilities in the Philippines, Malaysia and Indonesia.

Nelson said that Subic was chosen from among several possible locations in Southeast Asia, “as it provides reasonable advantages in cost and efficiency over the various storage areas where tobacco leaf are previously kept.”

“Through the years, we have steadily expanded our investments here in the Philippines. The project that we are groundbreaking today further cements our commitment to the economic development of the country and our faith in the Philippine tobacco industry,” Nelson said.   — With Elisa Osorio, Ric Sapnu