Philip Morris International (PMI) announced a significant shift in its European production strategy, moving part of its conventional tobacco manufacturing from the Krakow facility in Poland to the Canary Islands, in partnership with Dos Santos, a family-owned Canarian company with over a decade of collaboration. The plan involves an investment exceeding €15 million and the creation of about 120 new jobs on the islands, underscoring PMI’s long-term commitment to the region.
The news emerged after a meeting led by Enrique Jiménez, PMI’s managing director for Spain and Portugal, with the Canary Islands’ leadership. The meeting was attended by Angel Víctor Torres, the regional president, alongside Carmina Fusté, PMI’s island general manager, and Dacíl Barreto, Dos Santos’ director. The executive team expressed a willingness to share comprehensive project details with the regional authorities.
The proposed production expansion aims to supply twelve European Union markets, with a total project value surpassing €36 million. Key target countries include Germany, Italy, France, and Belgium. Within the Canary Islands, tobacco remains a major export and a backbone of the local economy, second only to bananas in export value. Current data indicate that 84% of Spain’s total tobacco product production comes from the Canary Islands, representing about 1% of the archipelago’s GDP and supporting roughly 5,279 jobs.
The Canary Islands’ leadership highlighted the investment as a confident step toward economic diversification and the preservation of a traditional industry on the islands. Parliamentarians have designated tobacco as a strategic sector since 1997, largely due to its employment impact and export capacity. The projected investment could reach approximately €170 million, a figure linked to the export performance of local agriculture and related sectors. [Citation: PMI press materials and regional government briefings]
“This is good news for the islands’ economic diversification and tobacco production”
Enrique Jiménez described the Krakow facility as a core asset to the region’s manufacturing and export balance. He noted that the site has a long-standing tradition of collaboration with Dos Santos, and the proposed Canary Islands project aligns with PMI’s strategic approach to expand production capabilities while maintaining high global standards. He called the plan a positive development that reflects PMI’s commitment to modernization and regional collaboration.
Jiménez further stated that the project could yield a meaningful contribution to the islands’ economy, highlighting PMI’s strong dedication to the Canaries as a strategic area. The company aims to diversify the archipelago’s industrial base while maintaining tobacco as a central, high-value sector. The collaboration underscores Dos Santos’ track record, its Canarian capital, and the quality standards associated with PMI, suggesting a robust alliance that could set new benchmarks for production excellence in the region.
Meanwhile, Dacíl Barreto, representing Dos Santos, remarked on the mutual satisfaction of PMI selecting a long-tenured, Canarian-capital partner to undertake this production. The decision comes after a competitive process that involved several European factories, reinforcing the value of local manufacturing expertise and regional competitiveness in a highly globalized market.
In this framework, a family-owned Canarian company appears to have demonstrated the capacity to meet high standards and operate effectively alongside multinational corporations, thanks to the island’s deep tobacco heritage. The move signals Canarian industry’s capability to compete on a global stage while reinforcing local expertise and export capabilities in a tightly connected European supply chain.
A smoke-free future
PMI’s strategic shift illustrates the company’s broader transition toward a smoke-free portfolio. The Krakow plant will concentrate on non-absorbent cigarette production and related innovations to meet rising demand, while the Canary Islands hub will focus on producing a cigarillo—a product akin to a filtered cigarette wrapped in natural tobacco leaf.
This production optimization entails relocating some traditional product manufacturing to another site. The Canary Islands and Dos Santos were selected through an internal competition that drew interest from four other European factories, emphasizing the region’s appeal as a manufacturing hub with strong local capabilities.
With this arrangement, PMI reinforces its commitment to the Canary Islands and highlights the region’s longstanding tobacco tradition. The collaboration also showcases Dos Santos’ century-long experience and 100% Canarian ownership, aligned with PMI’s quality standards and global manufacturing practices. The partnership reinforces the islands’ role in high-value industrial activities and positions tobacco as a resilient, still-relevant segment in the local economy. [Citation: PMI corporate statements and regional economic briefs]