In the context of AmCham's 30th anniversary, Mircea Scăunașu, General Director of PHILIP MORRIS ROMANIA shared his perspective on the company's growth and contribution to the development of the local economy during the past three decades. 

The full interview is included in the AmCham30 Brandvoice for Forbes Romania, June 2023 edition.

Progress. This is the word that best defines the evolution of the Romanian economy during the part 30 years. The 1990s were a challenging time for the Romanian economy, with an annual GDP decline of 1.9%. The country was transitioning from a centralized, state-controlled economy to a market economy. In the following decade, between 1990 and 2000, Romania lost 16% of its GDP. However, after 2000, the Romanian economy experienced significant growth, averaging 4.6% until 2021.

Despite all the challenges, in 1993, Philip Morris International (PMI) entered the local market and quickly became more than just a representative. In 1997, the construction of the factory in Otopeni began, a wise business decision and an investment opportunity in a difficult economic and social context.

Over the years, especially after the 2017 vision shift, PMI has undergone a remarkable transformation. The Otopeni factory has witnessed this incredible transition towards a smoke-free future. Since then, PMI has made significant investments of over $600 million in the modernization and retechnologization of the production unit. In conclusion, we have progressed together!

In addition to natural evolution, adapted to the Romanian economic environment, we, as a company, have set out to reinvent ourselves. As you know, Philip Morris International is a leading company in the tobacco industry that, through a revolutionary move, has aimed to build a smoke-free future. This entails, besides a tremendous amount of courage, the willingness to reinvent oneself and an ethical and honest way to put your decision into practice. I say it again, we are fully committed to building a future where cigarettes are no longer present, for the benefit of over one billion smokers worldwide, but especially for the nearly five million adult smokers in Romania.

For 30 years, we have been building in Romania, and since the establishment of our affiliate, we have always looked towards the future. In these three decades, we have invested over a billion dollars, employed local workforce, and aimed to be part of the country's socio-economic development process. Today, innovation and research help us move towards the next step, to transform ourselves at the operational and business levels. The impact of our activities is not only visible here, locally, but we are also relevant in other markets where consumables for smoke-free products manufactured in Romania are exported.

Investments in the modernization and automation of production processes have significantly contributed to the company's dynamics and the economic impact we have today. The Otopeni factory is one of the most modern units globally and the second largest in terms of consumable production in Europe after the Bologna factory. Over 90% of our factory's production is exported to 54 countries on five continents. Our economic impact in 2021 alone amounted to over €927 million, equivalent to 0.38% of Romania's GDP. We also pay significant taxes and contribute to reducing Romania's trade deficit.

All these numbers demonstrate that the vision of a smoke-free future is not a utopia. Together with my colleagues, we are building this future day by day. As a result, the five million Romanian adult smokers have access to accurate information and, depending on each individual's pace and journey, have the possibility to choose, at some point, a smoke-free product, a better alternative than continuing smoking.

Looking 30 years into the future, I believe that innovation and technological advancements, such as digitization and artificial intelligence, will continue to drive significant changes in the Romanian economy and society. I hope that Romania will be a place of opportunity for entrepreneurs, through continued economic and geopolitical stability. The country's European integration, democratic values, and talent pool will continue to be essential factors for its future success.

Even though the past 30 years have involved a long and often challenging journey for Romania, currently, our country offers business opportunities and is an extremely dynamic and competitive market. An investment such as the one made by Philip Morris International in Romania speaks for itself. We are not the only multinational company that has decided to invest here, but as you know, companies invest in a country when they can rely on safety and predictability in terms of politics, taxation, and regulation. Therefore, I look to the future with optimism, and Philip Morris Romania will continue to be a trusted partner of the Romanian state in the years to come.

>> Read the full interview (RO), here.

>> Meet Philip Morris International in Romania and its smoke-free future vision