Philip Morris International Inc. PM, -0.38% said Wednesday it has ceased all cigarette production at the facility of its Greek affiliate Papastratos, which will now only produce HEETS, the tobacco units used with its smoke-free product IQOS. This follows the company’s announcement a year ago that it was investing 300 million euro, which at the time was the equivalent of about $323.7 million, to convert the facility to a plant that can make tobacco sticks for IQOS. The company said it expects the facility to be fully operational by the end of 2018. “Papastratos is the first of our factories to end cigarette production and fully shift to manufacturing our smoke-free alternatives,” said Chief Executive Andre Calantzopoulos. “We will continue to convert existing sites and invest in new facilities to answer global adult smoker demand for better alternatives to cigarettes.” The stock slipped 0.3% in premarket trade. It has shed 12.6% over the past 12 months through Tuesday, while the S&P 500 SPX, -0.55% has gained 15.9%.
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