PMI invests €700M in Greek factory to boost smoke-free supply chain

Philip Morris International (PMI) has strengthened its global supply chain for smoke-free products with a strategic €700-million investment in its Greek affiliate, Papastratos.

Since 2017, the investment has transformed the Aspropyrgos factory in Greece into a leading production hub for IQOS and Terea products, which are now exported to over 40 markets worldwide.

“Through over 700 million euros in investments since 2017, Papastratos has created value both for the company and its people and for the environment and society,” the company said in a statement.

Papastratos' transformation. During a factory tour on April 4, Papastratos Communications Manager Katerina Chatzopoulou highlighted the company's commitment to smoke-free alternatives, in line with the core corporate positions of its parent company, PMI.

"If you don’t smoke, don’t start. If you smoke, quit. If you don’t quit, switch," she said.

Chatzopoulou also discussed Papastratos' history as a leader in Greece's tobacco industry for nearly 90 years. The company, which joined PMI in 2003, shifted its focus to smoke-free products with the launch of IQOS in 2016.

A €300-million investment in 2017 was made to convert the factory into an exclusive production unit for heated tobacco sticks for IQOS, which was recognized by the US FDA as a "modified risk tobacco product" in 2020.

"In 2017, the company turned the page in its long history and, with a significant €300-million investment, transformed its factory in Aspropyrgos into an exclusive heated tobacco sticks production unit for IQOS, the first innovative PMI product which potentially holds a lower-risk than that of cigarettes," the company said.

IQOS is now available in 92 countries and has been adopted by around 36.5 million adult smokers worldwide, including over 650,000 in Greece.

Inside Papastratos operations

Georgios Alifantakis, Vertical Start-Up manager, revealed that the factory is equipped with fully automated technology, allowing it to produce up to 10,000 smoke-free cigarettes per minute, or approximately 500 packs.

Papastratos also highlighted its commitment to sustainability.

In 2021, to mark its 90th anniversary, the company launched a five-year sustainable development strategy with a €200-million investment to boost production and improve its environmental and social impact. In 2023, an additional €200 million was invested, bringing the total to €700 million since 2017.

The investment "led to the creation of 300 new jobs and strengthened the company's export activity, reaching an annual export value of more than 400 million euros," according to Papastratos.

Economic impact, export markets

Papastros said that smoke-free products now account for more than 75% of its total revenue in 2023, as PMI's Greek affiliate continues its shift away from traditional cigarettes.

It contributes significantly to Greece's national budget through excise and VAT payments, amounting to €1 billion annually, or about 2% of Greece’s national budget revenues.

"In the past three years alone, we have more than doubled the capacity of our factory in Aspropyrgos. Alongside this, the value of our exports has also more than doubled reaching 300 million per year," the company said.

Based on its fact sheet, Papastratos exports 90% of its production to over 40 countries, with Japan being the largest market, accounting for 51% of exports.

IQOS heated tobacco sticks are the top Greek export to Japan, making up 80% of Greece’s total tobacco exports to the country. Germany and Spain are also major markets.

source：https://www.philstar.com/business/2025/04/14/2435930/pmi-invests-700m-greek-factory-boost-smoke-free-supply-chain