Philip Morris Philippines Manufacturing (PMPM), the American-owned tobacco manufacturer, plans to spend USD 21 million in capital expenditures (CAPEX) starting with this year and extending to 2010.

Chris Nelson, PMPM managing director, has stated that the company plans to spend USD 6 million, USD 7 million and USD 8 million this year, in 2009 and in 2010, respectively. The 3-year capital expenditure budget forms part of the company’s USD 65 million allotted CAPEX from 2005 to 2010.
For 2008, Nelson said the budget will be used to improve the company’s tobacco processing and packaging facilities.
Philip Morris is one of the country’s biggest cigarette firms. In 2007, the company bought a combined 5.2 million kg of Virginia and Burley tobacco in 2007, more than twice the 2.4 million kg the company bought in 2005. Nelson said Philip Morris would continue to boost its production in the country. In 2007 PMPM generated PHP 30.3 billion in sales from 23.7 billion cigarette sticks sold in the country and 8.4 billion sticks abroad. (sra)