PMPh cigarette production set to start next year

Philip Morris Philippines Inc. (PMPh) will start manufacturing its flagship brand Marlboro and other cigarette products in its new state-of-the-art plant in Sto. Tomas, Batangas beginning Jan. 1, 2003, PMPh managing director George Farah announced recently.

In a speech before the 10th National PR Congress of the Public Relations Society of the Philippines (PRSP) at the EDSA Shangri-La Hotel in Mandaluyong City last Sept. 27. Farah said the modern cigarette making facility located in a 25-hectare compound inside the Lopez-owned First Philippine Industrial Park is part of the $300 million investment of Philip Morris International (PMI) in the Philippines.

"From this plant will roll out Marlboro cigarettes manufactured in the highest quality standards our products around the world are known for," Farah said.

The new plant, the biggest PMI investment in Asia, boasts of a state-of-the-art cigarette manufacturing facility that features the latest in environmental protection, quality control and work safety standards.

"Like all world-class companies, we seek to be the very best at what we do. That means we’re always on the lookout for ways to improve our business processes and procedures," Farah said.

Fortune magazine recently ranked Philip Morris Companies Inc. (PMC) as the fifth most profitable company in the world and the 24th in terms of gross revenues. Philip Morris Philippines, Inc. is an affiliate of PMI, an operating company of PMC.

Marlboro and Philip Morris brand cigarettes have been manufactured and distributed under license by La Suerte Cigar and Cigarette Company in the Philippines since 1955.

Farah said PMPh and La Suerte have reached a mutual decision not to renew the license agreement when it expires on Dec. 31, 2002.

As PMPh takes full control over its business here in the Philippines, Farah urged Congress to pass a national law that will provide strong industry regulation to cover the manufacture, sale and use of tobacco products.

He stressed that it has always been the position of PMI and its affiliates worldwide to support and work for the regulation of the tobacco industry.

Farah added that PMPh supports legislation in the Philippines that among others will regulate marketing practices, ban smoking in public places and set a minimum age for the sale and purchase of cigarettes.

In supporting a regulatory framework, PMI and its affiliates based their position on four key principles:

• First, that smoking-related decisions should be made on the basis of consistent public health messages.

• Effective measures should be taken to prevent minors from smoking.

• The right of adults to choose to smoke should be preserved.

• And fourth, all manufacturers of tobacco products should compete on a level playing field.