One of the most successful and efficient foreign investment projects in Russia is celebrating an anniversary and summing up its operation for 15 years.
Tobacco companies have not talked too much to journalists lately. No one presented even the 2014 results at a press conference, everyone confined themselves to press releases. The more valuable was the invitation of journalists of leading business publications, the main media outlets in St Petersburg and the Leningrad Region, and the Russian Tobacco media group to a briefing and gala reception on the occasion of the 15th anniversary of the Philip Morris Izhora factory on 31 March 2015.
The first stone in the foundation of the factory was laid at the end of May 1998 and the opening ceremony for the freshly-built workshops occurred as soon as 15 February 2000. In 1998 it was a site cleared of trees, real “greenfield land” in the most literal sense. Today it is a developed site sized 50 hectares with production buildings sized 134,000 square metres. In 2014, the factory was recognised the largest facility of Philip Morris International (PMI) in the world in terms of production capacity. Today Philip Morris Izhora manufactures over 60 products both for the domestic market and export. Last year the facility supplied cigarettes to 12 countries (Armenia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Serbia, Japan, and others).
Over the last five years, over 300 million US dollars has been invested in upgrading the factory and the total amount of investment in the construction and equipment of the facility since its foundation now exceeds 1 billion US dollars. Philip Morris Izhora is among the leading taxpayers in the Leningrad Region. In 2014 alone, the facility paid about 80 billion roubles in tax, including excise, to the local, regional, and federal budgets of the Russian Federation. Tax payments by PM Izhora were 70.5 billion roubles in 2013 and 53.3 billion roubles in 2012.
“We are confident of the future of the Russian economy and continue to invest in infrastructure and development of our employees even in the current complicated economic conditions,” said Sergey Slipchenko, Vice President Corporate Affairs for Philip Morris International in Russia. “The factory’s successful operation in the Leningrad Region would be impossible without effective support which we have always felt from the Government of the Leningrad Region and administration of the Lomonosovsky District.”
“The prominent results our company has achieved should be credited to the entire staff. Thanks to the professionalism of our team Philip Morris Izhora has become a model innovation facility for all other PMI manufacturing centres and one of the best examples of efficient manufacture in the region,” noted Konstantin Soloviyov, Director General of Philip Morris Izhora.” The company takes an active part in public life in the Leningrad Region providing charity aid first of all to those who need it most: World War II and Siege of Leningrad veterans, elderly people and people with disabilities. In 2014, the total charity budget of PMI’s affiliates in Russia surpassed 52 million roubles.