Asia’s key production site banks on rising demand for IQOS devices at home and abroad
YANGSAN, South Gyeongsang Province -- Nestled in the countryside of Yangsan in southern Korea lies a sprawling factory tinged with the scent of tobacco. It lingers in the air -- distinct, yet far less pungent than that of traditional cigarettes.
Surprisingly high-tech and thus almost out of place in its rustic surroundings, the factory is redefining what it means to produce tobacco in the modern age, embodying a vision of a smoke-free future championed by its owner, Philip Morris Korea, the Korean arm of global tobacco giant Philip Morris International.
At the center of its smoke-free initiative is IQOS, a tobacco-heating device that offers a less harmful alternative to traditional cigarettes. The tobacco sticks used in the device are produced for Asian consumers at the Korean plant.
The Yangsan plant, PMI’s only factory in East Asia among its 51 worldwide, has anchored the company’s regional operations since 2002, with two-thirds of last year’s output for domestic use and the rest exported to 12 Asia-Pacific countries.
Tobacco sticks for IQOS now make up 60 percent of the factory’s output, a share expected to increase as demand rises at home and abroad. In the fourth quarter of last year, PMI said smoke-free products made up about 40 percent of its global net sales.
Production especially has gained momentum following new device launches and the rollout of device-specific tobacco units this year.
In February, Philip Morris Korea launched the IQOS Iluma i series in Korea, its latest flagship device with features like puff optimization and a customizable pause mode for a better user experience.
The new device lineup is compatible with two exclusive types of tobacco units: Terea and Sentia.
Terea, available in 18 varieties, focuses on offering a wide range of flavors, while Sentia, with four options, is designed to deliver a taste profile similar to that of traditional cigarettes, thereby helping smokers transition to smoke-free alternatives. Philip Morris Korea began nationwide sales of Sentia in April.
“The facility isn’t just a manufacturing site, but the heart of innovation in the heated tobacco products market,” said Zia Ahmed Karim, manufacturing director at Philip Morris Korea. “The nationwide launch of Sentia marks another milestone in our journey and reflects our commitment to enhancing global competitiveness through quality and technology.”
The 70,000-square-meter plant maintains consistent product quality and has the capacity to produce 40 billion cigarette units annually, including both IQOS sticks and conventional cigarettes.
“Virtually every step in the production of (IQOS) tobacco sticks is automated and managed by computerized systems capable of detecting even the slightest defects,” said a quality manager at the factory.
The plant operates a dual-phase production process -- Primary and Secondary -- that mixes and processes tobacco sheets before assembling them into sticks with filters. Each step is subject to real-time quality checks, including aerosol analysis conducted in the plant’s in-house laboratory.
According to PMI-led laboratory tests, the aerosol produced by IQOS devices contains, on average, 95 percent lower levels of harmful and potentially harmful constituents compared to cigarette smoke.
“An advanced production capacity, coupled with cutting-edge technology and rigorous quality control systems, makes the Korean facility an irreplaceable presence in the Asian market,” a company official said during a briefing on Tuesday at the plant.
By No Kyung-min (minmin@heraldcorp.com)
