Philip Morris inaugurates P600-million Subic facility

MANILA, Philippines - Philip Morris Philippines Manufacturing Inc. inaugurated yesterday its P600-million regional tobacco leaf warehouse at the Subic Techno Park inside the Freeport Zone.

The opening of the P600-million phase two facility at the Subic techno park cements the place of the Philippines as Philip Morris’ tobacco leaf warehouse hub in the Asia Pacific region.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand C. Arreza said the new warehouse is part of a three-phase investment plan of Philip Morris. The third phase will be for $15-million facilitity. However, Arreza said he does not know when Philip Morris will infuse the final part of the three-fold investment plan.

The newly opened warehouse will store tobacco leaf for shipment and processing in various PMI cigarette factories in the Asia Pacific region including the Philippines.

“This development establishes the Philippines, particularly the Subic Freeport zone as a major center for regional tobacco leaf trading and distribution,” Philip Morris Philippines Manufacturing Inc. (PMPI) managing director Chris Nelson said.

The new warehouse has a capacity for storing 14,000 metric tons of tobacco leaf. Nelson noted that the capacity can further be expanded to accommodate an additional 10,000 metric tons.

Nelson noted that the warehouse has state-of-the-art facilities such as humidity control, fire suppression equipment and air conditioning system to handle and carefully preserve the tobacco leaf imported from China, Indonesia, Thailand and many others.

The tobacco leaf stored in the warehouse will be used by Philip Morris manufacturing facilities in the region including the cigarette factory in Tanuan, Batangas.

“As with the other investments of Philip Morris in the Philippines, this leaf warehouse further cements our commitment to the economic development of the country,” Nelson said in his speech.

“We are especially proud that PMI has chosen the Subic Freeport Zone, from among several locations in Southeast Asia. It is a very ideal location that provides advantages in cost and efficiency over other countries where PMI’s tobacco leaves were previously kept,” he added.

The warehouse is not part of the assets that were merged with Lucio Tan’s Fortune Tobacco Company (FTC). Last February FTC and PMPMI, a local affiliate of PMI, announced that they have united the companies’ business operations in a new company called PMFTC Inc.

Both companies have contributed selected assets and liabilities into the new company, with each party holding an equal economic interest. Everyday management of the new firm is by Nelson while Lucio Tan sits as chairman.