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Philip Morris International (PMI) is planning to build a new $30 million vape factory in the Lviv region of western Ukraine in the first quarter of 2024.
It is said that the new vape factory will create 250 jobs.
According to the report, in July 2023, they will start the preparation work for the future vape factory construction. By the first quarter of 2024, the company expects to start the production. The new vape factory will employ more than 250 people, mostly are workers. Employment will mainly provide to employees of the Philip Morris factory in Kharkiv.
Maksym Barabash, Chief Executive Officer of Philip Morris Ukraine, says that,
“This investment reflects our commitment as Ukraine’s long-term economic partner. We are not waiting for the end of the war – we are investing now.”
Affected by the Russo-Ukraine war, Ukraine desperately needs foreign capital to rebuild and improve its economy.
Ukraine’s gross domestic product fell by 29.2% in 2022, the steepest decline since the country’s independence. However, Ukrainian officials and analysts predict that their economic will grow this year with the businesses adapt to new wartime conditions.
Actually, there are many large multinationals still in Ukraine. Some of them have recently announced investment plans to launch production in the central and western regions of Ukraine. These regions are far from the front lines.
PMI tobacco and vape factory at Kharkiv
Since starting operations in Ukraine in 1994, PMI has invested more than $700 million in the country.
Since the start of a full-scale war in Ukraine, the company has ensured a steady supply of its products in Ukraine through imports from PMI’s 8 factories and a temporary partnership with another manufacturer in Ukraine. What’s more, In 2022, the company paid 25.3 billion UAH of taxes in Ukraine.
According to a report in May, PMI considers it is unsafe to resume production at its vape factory near Kharkiv at the present time. So they suspend the factory in February 2022, and intends to run an alternative production in other regions of the country.
After the factory was suspended, PMI supply products to Ukraine from the company’s eight vape factories abroad for some time.
Since then, in order to find a solution that would allow the production of Ukrainian product in Ukraine, PMI signed an agreement. They start to produce the company’s tobacco and vape products at Imperial Tobacco’s factories in Kiev, where they are now producing.
Since the start of Russian-Ukraine war, the company has ensured a steady supply of its products in Ukraine. They imports from PMI’s 8 vape factories and a temporary partnership with Imperial Tobacco in Ukraine.
