Gov. Beshear Announces Largest Jobs Project of 2024: Swedish Match To Add 450 Jobs, Invest $232 Million in Owensboro Operation

Project is the 5^th largest investment on record this year; $277 million annual regional economic impact anticipated

OWENSBORO, Ky. (Aug. 27, 2024) - Today, Gov. Andy Beshear announced the largest new jobs project of 2024, as Philip Morris International Inc. announced its Swedish Match affiliate will expand its presence in Daviess County creating 450 direct jobs with a $232 million investment.

Today's announcement is also the 5^th largest investment project supported by the state this year.

"I'm excited to see this incredible new investment and the 450 great job opportunities it is creating for families in Owensboro and the surrounding region," Gov. Beshear said. "Our economy continues to set records, and today's announcement shows we're bringing jobs to our people instead of making our people move to the jobs. I want to thank and congratulate company leadership for doubling down here in the commonwealth and look forward to many more years of prosperity."

The Owensboro facility produces Swedish Match ZYN nicotine pouches, and the expanded production will allow the company to meet growing global demand from legal-age consumers for smoke-free products. Construction on the expanded facility has already begun with completion expected by Q2 2025. The investment also will facilitate the move from a 24-hour, five days-per-week schedule to 24/7 production later this year. New jobs created at the location will include engineers, production staff, technicians and quality control. More information on career opportunities is available here.

"Smoking cigarettes is the most harmful way to consume nicotine. We are accelerating our mission toward a smoke-free future, working with our U.S. affiliates to move adults away from cigarettes and other traditional tobacco products by providing better alternatives," said Stacey Kennedy, CEO of PMI's U.S. business. "This investment in U.S. manufacturing capacity will increase the Kentucky plant's workforce by about 40%, providing good-paying jobs and helping to meet the increasing demand for smoke-free products."

PMI is headquartered in Stamford, Connecticut, and its U.S. affiliates have more than 2,300 employees. Since 2008, PMI has invested $12.5 billion globally to develop, scientifically substantiate and commercialize innovative smoke-free products for legal-age nicotine consumers. PMI's U.S. affiliates operate smoke-free product manufacturing facilities including the Swedish Match North America Owensboro, which opened in 1973 and employs around 1,100 people. The company also operates a facility in Wilson, North Carolina, that produces HEETS, the consumable for the IQOS heated tobacco device. Swedish Match North America has a regional office in Richmond, Virginia.

Company leadership noted a projected $277 million annual regional economic impact associated with the project. The estimate is provided from an economic impact analysis study conducted by Econsult Solutions, a Philadelphia-based economics consulting firm.

Daviess County Judge/Executive Charlie Castlen noted the company's significant growth over the years: "Since Swedish Match's arrival in our community in 1973, they have been a premier employer where many of our neighbors have been thrilled to make their work home. The quality of our community workforce has been evident by Swedish Match's repetitive investment in upgrades to their facilities, always coupled with additional employment. With today's announcement, Swedish Match's Daviess County employee count will be more than four times what it was in 1973. On behalf of our community, I say thank you and congratulations to Swedish Match on this historic announcement!"

Owensboro Mayor Tom Watson said the project builds on the company's strong presence in the community: "For the past 50-plus years, Swedish Match has been a great corporate citizen and employer, bringing pride to our community. We are so appreciative they will continue their legacy in Owensboro. This new investment continues to prove why our community is a great place to do business."

Claude Bacon, president/CEO of Greater Owensboro Economic Development Corp., recognized the company's decades of success in the community: "Congratulations to Swedish Match on this major expansion in Owensboro and Daviess County. For over 50 years, Swedish Match has been a significant contributor to the economic impact of Greater Owensboro. An expansion of this magnitude creates additional high-quality and high-paying jobs, positively impacting families in our community. Greater Owensboro is in fact greater because of incredible companies like Swedish Match."

The company's investment and job creation build on the best four-year period for economic growth in state history.

Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling roughly $32 billion in announced investments, creating nearly 55,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth's history.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.

Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On's transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC's $2 billion, 2,000-job gigafactory project in Warren County; Toyota's $1.3 billion investment in Scott County; and INFAC North America's $53 million investment in Taylor County, among others.

The Governor's administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody's Investors Service upgraded Kentucky's credit outlook from stable to positive.

In March, Site Selection magazine ranked Kentucky third nationally and first in the South Central economic development projects per capita in its 2023 Governor's Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.

Gov. Beshear announced a "Supply Kentucky" initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

For more information on Philip Morris International, visit PMI.com/us and PMIscience.com.

A detailed community profile for Daviess County can be viewed here.

Information on Kentucky's economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.

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