Philip Morris opens P600 million leaf distribution hub in Subic

Philip Morris International (PMI) opened yesterday in Subic Bay Freeport its P600 million regional tobacco leaf warehouse facility which will serve as regional distribution hub in the Asia-Pacific region.

“This development establishes the Philippines particularly the Subic Freeport zone as a major center for regional tobacco leaf trading and distribution,” Chris Nelson, managing director for Philip Morris Philippines Manufacturing Inc. (PMPI) said in his speech during the opening ceremony.

The newly built P600 million leaf warehouse facility stands on a two hectare lot built within the 5 hectare land area that PMI leased for 50 years from the Subic Bay Metropolitan Authority (SBMA).

The new warehouse has a capacity to store 14,000 metric tons of tobacco leaves, and can be further expanded to accommodate an additional 10,000 metric tons for a total of 24,000 metric tons of tobacco leaves for distribution for Asia-Pacific operations.

The inauguration ceremony marks the second phase of Philip Morris’ venture here after completing the first phase covering a 10,000 square meter warehouse which was renovated at a cost of P30 million and was opened on January 2008. The first warehouse could accommodate some 6,100 metric tons of tobacco leaf.

Nelson said that the new warehouse has a “state-of-the-art” feature such as humidity control, fire suppression equipment, and air conditioning system to handle and carefully preserve the tobacco leaf.

“We import tobacco leaves from China, Indonesia, Thailand and India, among many others,” Nelson said as he also assured that Philip Morris is committed support local tobacco industry.

For his part, Subic Bay Metropolitan Authority (SBMA) Administrator Armand C. Arreza said that the opening of Philip Morris regional distribution facilities here boosts the efforts of the SBMA to make Subic Freeport as a transshipment hub in Asia Pacific region.

“This facility is truly a clear vote of confidence for Subic and the government,” Arreza said as lauds the operational capacity of the warehouse to handle more than 300 containers at any given time.

Nelson said that 2010 is “full of landmark developments” for Philip Morris in the country which started with signing of an agreement on February 25 between Philip Morris and Fortune Tobacco Corporation to combine its selected assets and liabilities in a new company called Philip Morris Fortune Tobacco Corporation (PMFTC) Inc. to combine the products of the two companies thereby controlling 90 percent of the tobacco industry in the country.

“This morning, Philip Morris again renews its commitment as an active partner and contributor to Philippine economic growth through this new regional leaf warehouse in Subic,” Nelson said.

Nelson added that as Philip Morris grows its business in the country, “we will continue to act as a responsible corporate citizen and to conduct our business with the highest degree of integrity.”

“AS with the other investments of Philip Morris in the Philippines, this leaf warehouse further cements our commitment to the economic development of the country,” Nelson said.

The ceremony was graced by former SBMA chairman and Senator Richard Gordon, former Bureau of Customs Commissioners Bert Lina and Guillermo Parayno, BoC deputy commissioner Alexander Arevalo and other top SBMA officials.

Philip Morris is the leading international tobacco company, with seven of the world’s top 15 brands, including Marlboro, the number one cigarette brand worldwide.

Philip Morris invested more than $300 million in the construction of its class cigarette manufacturing facility in Tanuan City, Batangas which become operational in 2003. Rey Garcia