Investing.com -- Philip Morris International Inc. announced today it will double its investment in a Colorado manufacturing facility for Zyn nicotine pouches to $1.2 billion through 2028, up from the original $600 million commitment made in 2024.

The plant, located in Aurora approximately 10 miles east of Denver, recently began production. The expanded investment comes as the company faces growing competition in the nicotine pouch market from products including British American Tobacco Plc's Velo Plus.

Zyn represents a central component of Philip Morris' transition away from cigarettes as more consumers choose smoke-free alternatives. The product currently leads the nicotine pouch category, though newer competing products have challenged its market position.

The Colorado facility will increase Philip Morris' domestic manufacturing capacity as the company scales up production of Zyn Ultra, which launched in the US in June. The new pouch features a softer texture and higher nicotine content, reflecting changing consumer preferences.

Zyn Ultra marks the first new version of the product since the original launched ten years ago. Philip Morris delayed introducing new versions while awaiting authorization from the US Food and Drug Administration.

The Aurora campus will also supply international markets across Asia, Latin America and the Caribbean.