Philip Morris expands operations in Klaipeda, Lithuania after shutting down factory in Ukraine

MOSCOW. Oct 31 (Interfax) - Philip Morris International (PMI) has decided to expand the production capacity of its factory in Klaipeda, Lithuania after suspending operations in Ukraine, the U.S.-based tobacco concern said in a statement.

When implementing the project, a new section of the production building will be constructed, connected to the existing storage facilities, Philip Morris PM Lietuva, the company's Lithuanian division, said in response to a request from the Baltic News Service agency.

The cost of the project is 3.5 million euros, and work is scheduled for completion toward the end of 2023.

The factory in Klaipeda will produce products intended for Ukraine, the company said.

Meanwhile, the company clarified later that the investments in the Klaipeda factory were not related to events in Ukraine, and production was being optimized due to complex supply chains.

PMI on February 25 this year announced the suspension of its activities in Ukraine, including a factory in Kharkov, owing to the special military operation.

Ukraine accounted for around 2% of overall cigarette and heated tobacco shipments in 2021 and less than 2% of Philip Morris' total revenue, according to the company.