Philip Morris could make “significant” investment in Romania

Tobacco manufacturer Philip Morris International presented to prime minister Sorin Grindeanu the project of a significant investment for the local market, according to an announcement from the Romanian government. Romania is the third market where Philip Morris International could develop a pilot project as the country offers a “friendly investment climate.” Philip Morris is already present in Romania with a factory in Otopeni, which produces cigarettes for the local market and for export. Philip Morris Romania, the local company that operates the factory, had a turnover of almost EUR 43 million and a net profit of EUR 6 million in 2015, according to official data from the Finance Ministry. Phillip Morris Trading, which is the group’s distribution business, had sales of EUR 505 million and a net profit of EUR 5.7 million in 2015. The two companies together employ close to 900 people. The main competitors of Philip Morris in Romania are British American Tobacco (BAT) and Japan Tobaco International (JTI). Earlier this year, BAT announced it would invest EUR 21 million in its local factory in Ploiesti to start making next generation vapor products. BAT is the biggest distributor of tobacco products in Romania in terms of sales. BAT Romania Trading, the group’s distribution division, had sales of EUR 1.65 billion and a net profit of EUR 98 million, in 2015, being among the top 10 companies in Romania by turnover. Romania’s Tax Agency to fight cigarette smuggling in special operation Romania loses EUR 670 mln revenues due to cigarette smuggling editor@romania-insider.com