JT International (JTI) is positioning its P1.9-billion Dry Ice Expanded Tobacco (DIET) plant in Batangas to support potential production growth and broaden the Philippines’ export reach, as the country strengthens its role as the tobacco giant’s manufacturing hub for Asia.
The facility, inaugurated in Batangas, could pave the way for additional markets to source cigarettes from the Philippines, particularly products using DIET-treated tobacco, according to Shaiful Bahari Mahpar, director for corporate affairs and communications at JTI International Philippines Inc.
“Having the DIET plant here may have a potential of increasing production from here, because now we have the ingredients,” Mahpar said in an interview on the sidelines of the inauguration.
He cautioned, however, that additional export orders remain speculative and would depend on market demand and commercial viability.
JTI’s Batangas factory currently exports to 22 markets worldwide while also supplying the domestic market.
The new facility also allows JTI to localize its supply of DIET-treated tobacco, which it previously imported from overseas production sites.
“100 percent of DIET tobacco will be from here,” Mahpar said, while noting that JTI will continue importing other tobacco leaves needed for specific product blends.
The investment comes as JTI reaches production volumes that make DIET technology commercially viable in the Philippines. Mahpar said the company previously could not justify the investment because volumes were too low.
The DIET plant is part of an additional P2.1-billion investment by JTI at LIMA Estate in Malvar, Batangas. The package also includes more than P177 million for the expansion of its Controlled Atmosphere treatment facility.
JTI purchases an estimated 4 million to 6 million kilograms of Philippine tobacco leaves annually, according to Mahpar.
He said any further manufacturing investments would hinge on market opportunities and whether additional capacity makes commercial sense.
