By Timothy S. Donahue
Top Takeaways:
Plant closure: Philip Morris International will close its Dothan cigar factory, affecting 54 workers.
Portfolio shift: The move linked to PMI’s effort to promote a smoke-free U.S. business model.
Legacy site: The factory manufactured Game and White Owl cigars, key brands acquired from Swedish Match.
Philip Morris International is shutting down a long-standing cigar manufacturing plant in Alabama, another indication of the company’s continued move away from traditional combustible products in the U.S.
The company confirmed it will close its Dothan factory, affecting 54 employees as operations gradually wind down over the next few months. Approximately 20 employees will stay on-site to handle ongoing business needs. The facility has been a staple in the region for decades, producing cigars for major brands including Game and White Owl, which are part of PMI’s portfolio following its 2023 acquisition of Swedish Match.
PMI stated that the decision is based on broader strategic priorities. “The decision to close our manufacturing operations in Dothan reflects our focus on operating efficiently and sustainably across all aspects of our business and on accelerating the growth of our smoke-free business in America,” said Peter Luongo, managing director of cigars at PMI U.S.
The company highlighted that the move does not reflect on the workforce. “This change does not diminish the pride we have in the work done in Dothan. The dedication, craftsmanship, and teamwork of our colleagues here have had a meaningful impact on our business,” Luongo said.
Employees will receive severance packages, extended salary continuation, company-paid health insurance for a period, and outplacement services, according to the company. The site on Columbia Highway predates Swedish Match’s ownership, which started in 1999 before PMI acquired the company as part of its larger focus on smokeless and modern oral nicotine products.
The closure highlights a broader industry trend: consolidating combustible manufacturing capacity as companies shift investment toward smoke-free options and more efficient production networks. For PMI, which has publicly committed to becoming a majority smoke-free company, the move aligns with its strategy to rebalance its U.S. footprint—even as it continues to operate in traditional combustible tobacco categories.
