By Timothy S. Donahue
Top Takeaways:
Production shift: PMI moving part of its ZYN output from 24/7 to 24/5 schedule
Demand reset: Company cites “exceeding market demand” after rapid expansion
No closure: Facility remains central to U.S. ZYN operations, with flexibility to ramp back up
Philip Morris International is dialing back production at its U.S. nicotine pouch hub, signaling a shift from rapid growth to a more measured pace.
The company confirmed it will scale back part of its ZYN production schedule at its Swedish Match facility in Owensboro, Kentucky, shifting portions of operations from a 24/7 schedule to a 24/5 model starting this summer.
The change primarily affects the ZYN Flagship department, which will transition to a five-day, three-shift schedule in accordance with the existing union contract. PMI said the move reflects shifting market dynamics after a period of aggressive expansion.
“Recently, there have been changes in market conditions and, as a result, the ZYN Flagship department is exceeding market demand,” said Shane Dukes, vice president of U.S. manufacturing at PMI, in a letter to union officials.
The adjustment is expected to take effect on July 6. The Owensboro facility has been central to PMI’s U.S. growth strategy, particularly after its acquisition of Swedish Match and the surge in demand for nicotine pouches.
In 2024, PMI invested more than $230 million in the site, expanding capacity and adding roughly 450 jobs to support increased ZYN production. That expansion led to continuous 24/7 operations—an intensity the company now says is no longer necessary across all lines.
“This is a production schedule adjustment driven by market conditions, not a facility closure or relocation,” a company spokesperson said. “Owensboro remains central to PMI U.S.’s ZYN operations.”
Not all production will be scaled back.
PMI said that ZYN Ultra lines and maintenance operations are expected to continue operating on a 24/7 schedule, reflecting ongoing investment in newer product variants and innovation pipelines. The company emphasized that the move is reversible.
According to the letter, PMI could return the Flagship department to a continuous schedule if demand rises again. For now, the focus is on aligning output with current market conditions.
The company said it provided roughly 10 weeks’ notice—well beyond contractual requirements—and will work with union leadership to manage scheduling, job assignments, and seniority during the transition.
