Philip Morris Fortune Tobacco Corp., the country’s largest cigarette manufacturer, plans to expand its newly-opened manufacturing facility in Mindanao, the company’s new chief executive said.
PMFTC president Roman Militsyn said the expansion would cover the firm’s Claveria fresh leaf buying and curing facility in Misamis Oriental.
Militysin said the newly opened manufacturing facility, which aimed to increase tobacco production over the next three years, was “progressing quite well.”
“The most important thing is to make the quality right and then we will get the quantity so overall, I would say we are quite happy in terms of the progress and we are looking forward for an expansion as well,” he said.
The facility aims to achieve a maximum capacity of 4 million kilograms annually before 2017, as part of the company’s long-term commitment in the Philippines.
Militsyn said the company would also focus on product portfolio expansion, being the biggest player in the tobacco industry.
“In principle, as you know we are the biggest player in the market. I think we have a quite solid and strong portfolio of our brands. The major focus will continue to be on how we can grow the portfolio of our brand,” Militsyn said.
“We’ll continue to focus of course in our manufacturing facilities, as you know we have a manufacturing facility in Batangas also in Marikina. In terms of modernization of equipment, in terms of investment, in terms of our work force as well and etc. So more or less, these are the priorities,” he said.
Militsyn said there were opportunities to improve cigar quality in the country. “I think there are opportunities to work on the modernization to work on technical improvements and as a result improve the quality. Tobacco market in the world is quite competitive so that’s why the quality price ratio plays a key role,” he said.
“The focus of the industry is to work on the quality and make competitive in terms of pricing so in principle I think there is an opportunity to work on that and make the Philippine tobacco industry even more competitive and even for the other markets as well,” he said.
Militsyn said PMFTC planned to increase its current market share at 73 percent. “It’s difficult when you are already quite big to grow further but that’s the ambition of any company, to look for further opportunities to grow. That’s why we continue to focus on expanding our portfolio involving plants, packaging to further satisfy the customer needs,” he said.
