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Philip Morris Italy, 500 million investment for the tobacco supply chain between 2023 and 2027

The Ministry of Agriculture and Philip Morris Italy have signed the five-year agreement for the purchase of Italian raw tobacco

Philip Morris Italy, 500 million investment for the tobacco supply chain between 2023 and 2027

“Philip Morris will invest up to 500 million euro in five years, between 2023 and 2027, for the tobacco agricultural supply chain in Italy, committing to purchase up to 21.000 tons of raw tobacco every year thanks to the agreement with Coldiretti”. This was stated by the president of the South-West Europe area of ​​Philip Morris International, Marco Hannappel, during the signing event of theagreement five-year period between Ministry of Agriculture e Philip Morris Italy, in continuity with the agreements signed by the Company for over a decade, for the purchase of Italian raw tobacco.

Hannappel: “A future without smoke”

"This is the largest investment by a private company in Italian tobacco cultivation, corresponding to around 50% of the entire national tobacco production", explained Hannappel, underlining how "these agricultural investments represent an essential component of our integrated supply chain connected to the manufacture of innovative products without combustion Made in Italy:, which in Italy has over 38.000 people, who share with us the vision of creating a smoke-free future”.

“Through the agreement, we also aim at developing innovative solutions for the eco-energy and environmental sustainability of cultivation, at the digital transition and, another aspect of great importance, at supporting the training of young farmers: joint actions that allow us to support and increase the competitiveness of the Italian tobacco supply chain”, concluded the president.

Philip Morris Agreement and Ministry of Agriculture

The agreement with Masaf provides for investments of up to 500 million euros over the next five years, in addition to the two billion already invested by Philip Morris Italia since the early 50s in Italian agriculture. Philip Morris Italia's commitment is to purchase up to approximately 21% (XNUMX tons) of the total production of Italian raw tobacco thanks to the supply chain agreement with Coldiretti and collaboration with ONT Italy (National Tobacco Organization Italy). This is the largest investment in the Italian tobacco supply chain, the most important in Europe in terms of volumes, by a private company.

Among the planned actions, the dissemination of good agricultural and labor practices, promoting initiatives aimed at reduction of CO2 emissions, (also through the use of alternative renewable energies), the responsible and sustainable use of water resources, the protection of biodiversity and continuing to develop innovative technological projects through acceleration and Open Innovation models.

Further related agreements may result from the agreement signed today new investments in the Italian supply chain connected to the production of innovative products without combustion, in order to encourage further growth of the sector through investments in agriculture 4.0, research and development, manufacturing 4.0, training, and advanced services.

The Philip Morris Commitment

Hannappel then recalled the Philip Morris projects. “We have built the largest on the outskirts of Bologna investment Greenfield of the last twenty years, with an investment of over 1 billion euros, to build the first and most important production plant in the world for innovative products without combustion. Our Center for Industrial Excellence was recently born in the Bologna plant - focused on R&D services in areas such as industrialization, process innovation, engineering and sustainability - which involves 250 highly qualified people and is part of a further investment of around 600 million euros over three years, linked to new products without combustion, which will generate an estimated direct, indirect and induced employment impact of around 8000 jobs along the supply chain".  

“Last June we inaugurated the Philip Morris Institute for Manufacturing Competences (IMC), the new center for advanced training in Industry 4.0 skills, dedicated to the development of industrial skills of the future, with a particular focus on training and professionalization, technology transfer and open innovation, applied research and the university-business relationship. An open system, whose activities will be aimed at the people of Philip Morris and its supply chain, as well as at the entire economic, entrepreneurial, education and training world, at a regional and national level".

“I left in Taranto and Caserta Philip Morris Digital Information Service Center (DISC), advanced assistance centers for current and potential Italian customers of innovative combustion-free products, with total investments of 150 million euros over five years and about 500 active people".

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