Zyn parent company Philip Morris International to invest $600 million, create 500 jobs in Colorado
Aurora got a massive economic boost on Tuesday when Philip Morris International announced plans to build a 600,000 square foot manufacturing facility in a far northern part the city.
"It's an extraordinary day for the city of Aurora," Mayor Mike Coffman said.
The company says the factory, which will produce the nicotine pouch, Zyn, represents an investment of about $600 million.
It says it will break ground the end of the year south of Denver International Airport at East 48th Avenue and Harvest Road, and will begin operations by the end of 2025.
So many smokers are turning to the nicotine pouches that there's now a shortage of them. They were originally created by Swedish Match, which Philip Morris International acquired two years ago.
The company -- which makes and sells only smokeless products in the U.S. -- says the new facility is expected to have an economic impact of $550 million a year.
Stacey Kennedy, CEO of Philip Morris International, says the company has come full circle. Ten years ago, she says, Colorado became the first state in the country to sell Zyn.
"Colorado is the birthplace of Zyn and we're coming home," Kennedy said.
Kennedy says Colorado's emphasis on health and wellness makes it -- perhaps surprisingly -- the perfect place for the Zyn factory.
"The first thing we say is smokers should quit. But if you don't quit, switch to a scientifically substantiated better alternative," Kennedy said.
She admits some elected officials had reservations, especially regarding sales and marketing to minors. Kennedy says they use two-step age verification and don't use social media influencers to advertise Zyn.
"We are asked for partnerships. We deny every single one. Second, we monitor social media, and we flag social media platforms when we see inappropriate content," Kennedy said.
The Philip Morris CEO won over many skeptics. The company received a $7 million incentive from the city of Aurora and about $4.5 million each from the state and Adams County.
Kennedy says incentives aren't what set Colorado apart.
"The diverse workforce was really a key element and the highly educated one."
Over the last five years, Colorado has lost 680 pharmaceutical jobs, with transferrable skills. Kennedy says the new facility will create 500 jobs in everything from engineering to production to quality control.
"The best news is we start recruiting today," Kennedy said.
Kennedy says the average salary will be about $90,000 a year, and the company will be investing in child care and pre-K for employees. It is also investing $2.5 million in military veteran organizations and transitional housing.
In addition to the manufacturing jobs, construction of the facility is expected to create nearly 5,000 jobs and have an economic impact of nearly $1 billion.