Philip Morris International has completed a $1.2 billion production campus in Aurora, Colorado, specifically dedicated to manufacturing Zyn nicotine pouches.

Philip Morris International (NYSE: PM), up 1.25%, has established this large-scale production facility in Colorado to expand Zyn product line capacity and meet rising global demand for nicotine pouches.

The company stated on Monday that the project, initially announced with a $600 million budget in 2024, has now opened. The Aurora facility enhances the company's U.S. manufacturing capabilities and strengthens supply chain resilience.

The project took approximately 19 months to build and officially began production earlier this month. The entire campus spans about 780,000 square feet and is focused on producing Zyn nicotine pouches, making Aurora a central production and export hub for the brand's future growth.

Stacey Kennedy, President of Philip Morris USA, said: "This new factory boosts our capacity and solidifies our supply chain, allowing us to better meet rising demand in the U.S. and globally. It also demonstrates our confidence in U.S. labor, domestic manufacturing, and the company's long-term growth prospects."

To date, Philip Morris has invested approximately $1 billion in the Aurora campus. The company plans to invest an additional $200 million over the next two years for Phase 2 construction, adding new production lines and expanding the facility.

Philip Morris stated that this expansion will support continued Zyn growth in the U.S. market while aiding the brand's entry into overseas markets such as Asia, Latin America, and the Caribbean. The company added that once fully operational, the factory is expected to generate about $550 million in annual economic impact and indirectly create 1,000 jobs.

Last week, Philip Morris announced plans to increase its U.S. investment to solidify Zyn's leading position in the U.S. nicotine pouch category. The company's second-quarter revenue rose, with Zyn pouches serving as a core growth engine; U.S. market shipments increased by 1.8% to 2.9 billion units.

In addition to the new Colorado campus, Philip Morris also has domestic production facilities in Kentucky and North Carolina.