This year, Philip Morris International celebrates 30 years of its presence in Romania, 30 years of investments that have more clearly defined the company’s goal today – to build a smoke-free future in our country. On this occasion, the company’s CEO Jacek Olcak announced a new round of investment in the plant in Otopeni at an event with the participation of the Prime Minister of Romania, Marcel Čolaka, and the Minister of Finance, Marcel Bolos.

Marcel Čolaku at the Philip Morris Romania eventPhoto: Hotnews

“I believe that it is our duty, the government of Romania, my duty, the minister of finance, the minister of economy – to invest as much as possible in the industry with zero tax evasion. Consolidating this relationship between the government and investors, especially in the industries that have understood very well that the state is consolidated and stable, and because of the taxes it collects, it can only be a serious partner of any Romanian government,” said Marcel Colacu.

Key statements from the event organized on the occasion of the 30th anniversary of the presence of Philip Morris International in Romania:

Marcel Ciolacu, Prime Minister of Romania:

  • It is impressive what has been built in these 30 years at this place. The cutting-edge technology you use, the product design, and most importantly, the community you’ve built with the people in this business is amazing.
  • The high level of working conditions, conditions for your employees, the average age of 35-36 years shows the connection of the 30s with experience and youth, and, above all, the level of investments.
  • So far, almost 600 million dollars have been invested. There is an investment, again, about $130 million in the future. These are impressive figures that make you a very important contributor to the state budget.
  • As the Minister of Finance said at the meeting, you paid taxes on approximately 500 million euros. This is an impressive figure. Moreover, the fact that now 90% of your products are exported, I, as the prime minister, can only be happy, because we are equalizing the trade balance of Romania.
  • But business aside, everyone involved needs to understand that we all have a huge responsibility, which is to be very aware that any kind of addiction, whether in youth or adults, must be avoided and fought against.
  • Mr. Bukurenci said, in choice words, that we must have this choice to be able to choose the lesser or greater evil. As a parent, I firmly believe that the use of nicotine, tobacco in any form or in any form does not bring any benefit to individual or collective health.
  • My point, but that doesn’t mean you have to take it, is that the world needs to be informed, the world needs to know the truth, know the risk, and most importantly, choose.
  • We create opportunities, we bring information to the public, and the public chooses. And I strongly believe that you do, and it is a priority for you to make sure that the population is as informed as possible.
  • I can’t help but tell you that the rate of tax evasion in your industry is 0. This is in Romania, where the rate of tax evasion is one of the highest in the EU. In other words, I think it’s our duty, the government of Romania, mine, the Minister of Finance, the Minister of Economy, to invest as much as possible in industries that have 0. I think that’s not the case, strengthening it Relations between the government and investors, especially in industries that have understood very well that the state strengthens and supports itself through the taxes it collects, can only be a serious partner for any Romanian government.
  • I will continue to encourage any investment in this location and beyond. I believe that we are the second exporter of these products after Poland, somewhere on par with Germany. We are already talking about perfection.
  • I guarantee you that we will have direct contact.

Jacek Olczak, CEO of Philip Morris International:

  • It’s good to be back here in Romania. It is a very sentimental place for me because my career as one of the many PMI General Managers began here in this factory.
  • I have many wonderful memories from here. 20 years later, I am here as CEO of Philip Morris International, but a Philip Morris International that has a very different purpose than when I was in Romania.
  • Our goal then was to become the most successful cigarette company in the world. Today our goal is to give up cigarettes. For more than a decade, Philip Morris has invested in science and technology to develop products that significantly combat smoking in ways never before considered.
  • As a result of many years of work and the involvement of hundreds of specialists, we have developed a product that, as we can confidently say, is capable of changing the lives of smokers.
  • Our product reduces the impact of harmful substances contained in cigarette smoke by 90-95%. Therefore, the investment and decision to transform Philip Morris International into a 100% smoke-free company is also made here at the Otopeni plant.
  • So far, we have invested $600 million in this location. Today we decided to increase this investment by $130 million and we will stay here.
  • The Prime Minister and his fellow cabinet members today had the opportunity to see what can be called a work of art in the entire tobacco industry. We are not bringing to Romania investments in cheap and old technologies, but we are bringing to Romania the most advanced technologies with which we will develop products that can solve the public health problem of smoking in the most serious way. maybe. Of course, this means that many people will change their minds about what a tobacco company of the caliber of Philip Morris can produce.
  • People’s minds have become more open and they now realize that through science we can solve problems that could not be solved before.
  • I am happy that we have enjoyed a good climate in Romania during these years.
  • Not all tobacco products are the same. Some are much better, and it benefits the economy, the public budget and trade balance, and the smokers and people who work here.

Mircea Skounasu, CEO of PMI:

  • I am glad that you are visiting our home today and that we have the opportunity to celebrate together the 30th anniversary of PMI’s presence in Romania.
  • I had the opportunity to see the factory in Otopeni for the first time in 2004, and then there was only a cigarette factory. I returned to the Otopeni factory after 19 years of travel, professional travel at the international level, I saw that the Otopeni factory has changed profoundly. There is nothing more exciting than returning to the place where everything changed to be able to watch technological evolution and innovation shape the present.
  • Today, our factory is a modern enterprise. Leave cigarettes behind and we’ll focus on the future and produce consumables for alternative products to keep smoking going.
  • Building a smoke-free future is perhaps the biggest challenge in our history.
  • Worldwide, as I said earlier, there are eight plants, three of which are in Europe. We have factories in Greece, one in Italy and one in Otopeni.
  • Now this plant in Otopeni is the second in Europe after the plant in Italy in terms of volume.
  • Today, the production is completely reconstructed and modernized, and, as the Prime Minister previously reported, 90% of the products are exported to 54 countries on five continents.
  • We have been investing in Romania for 30 years, a journey we travel with confidence, with the feeling that we can change the mentality and offer better alternatives than continuing to smoke.
  • We are the first company in the industry that relies on science and innovation, and in Romania we currently have more than half a million consumers.
  • The additional investment of 130 million is our promise to the approximately four million adult smokers in Romania, as well as our commitment to the development of the local economy.
  • We continue to invest because we firmly believe that we can build a smoke-free Romania. The additional investment will help us further transform the factory, add new production lines, create new jobs, but at the same time support the Romanian economy.
  • Such a deep transformation is reflected not only in the market or in economic business relations. It also has a profound impact on Romania’s economy. We pay, as the Prime Minister said, 2.6 billion lei every year, and in recent years the export of heated tobacco products has had a significant impact on reducing the trade deficit. To be able to continue on this path successfully, we need correct information about the nearly four million smokers, and we need to agree that science is science, and public policy must always be based on truths, not myths, or, in other words, science, but not by ideology.
  • In conclusion, I want to thank the Prime Minister, the members of the Government and the members of Parliament present here, and I want to thank them for the transparent dialogue that we have had and the openness that they have about science and innovation.
  • A smoke-free Romania is possible. It is up to us how quickly we move into this future and how quickly we can accelerate this transition.

Article supported by Philip Morris Romania