Owensboro’s Swedish Match facility will transition part of its production schedule away from around-the-clock operations this summer as parent company Philip Morris International adjusts to changing market conditions.
PMI U.S. officials said the company informed union leadership and employees on April 22 that portions of ZYN production will shift from a 24/7 schedule back to a 24/5 schedule, consistent with the default terms outlined in the collective bargaining agreement.
The change primarily affects the ZYN Flagship department, which will return to a five-day, three-shift operation. Company leaders said the adjustment is intended to rebalance production following a period of heightened demand and expansion.
“As discussed verbally, both PMI U.S. and the Union share the same goal of producing the highest quality products to meet customer demand,” Shane Dukes, vice president of U.S. manufacturing, wrote in a letter to union officials that was viewed by Owensboro Times. “Recently, there have been changes in market conditions and, as a result, the ZYN Flagship department is exceeding market demand.”
Dukes said in the letter that the company aims to implement the change by July 6.
The Owensboro facility moved to continuous 24/7 production during a recent expansion period, when PMI invested more than $230 million into the site in 2024. That expansion increased capacity and created approximately 450 jobs to meet surging demand for ZYN nicotine pouches.
Company officials said the current shift reflects a “normalization” following that ramp-up phase.
“This is a production schedule adjustment driven by market conditions, not a facility closure or relocation,” a company spokesperson told Owensboro Times in a statement via email. “Owensboro remains central to PMI U.S.’s ZYN operations.”
According to the letter, the change will not impact all operations. ZYN Ultra production and maintenance operations are expected to remain on a 24/7 schedule.
Under the revised plan, employees in affected departments will return to schedules outlined in the collective bargaining agreement, the letter says. The company said it will work with union leadership to address job assignments, seniority considerations, and shift preferences during the transition.
Article V of the agreement requires at least one week’s notice for operational changes, though the company said in the letter that it is providing approximately 10 weeks’ notice to allow employees time to prepare.
PMI also noted in the letter that it could return the Flagship department to a 24/7 schedule in the future if market demand warrants.
The spokesperson told OT that the Owensboro facility, operated by Swedish Match and owned by PMI, remains a key hub for the production of ZYN and “remains central to PMI U.S.’s ZYN operations.”
