[Report] Visiting the IQOS Iluma 'Teria' Production Factory... "Robots Instead of People and Only Tobacco Aroma"

Korea Philip Morris Yangsan Factory
Full Production of New Teria Stick
Minimizing Manual Work through Process Automation
Completing Quality Inspection to Finish 'One Cigarette'

Exterior view of the Korea Philip Morris Yangsan factory. / Photo by Korea Philip Morris

[Asia Economy (Yangsan) = Reporter Song Seung-yoon] On the morning of the 23rd, at the Korean Philip Morris cigarette manufacturing factory in Yangsan, Gyeongnam Province. Various slogans such as "A World Without Cigarette Smoke" and "A Building Without Cigarette Smoke" were displayed throughout the factory visited that day. As expected in a cigarette factory, smoking rooms were visible in several places. There was a place where visitors could experience products with demonstration devices and sticks of various types. Smoking was allowed, but bringing in conventional cigarettes, heated tobacco products, or devices from outside was prohibited. For this reason, employees also stored their cigarettes in lockers prepared separately before entering. This measure was taken to prevent mixing with cigarettes produced and shipped from the factory.

Upon entering the factory, the first thing that caught the eye was the cigarette sticks, shaped like cigarettes, continuously moving along a long line about 2 meters high. Amid the loud machine noises, a strong menthol scent was noticeable throughout the area. This is where Korean Philip Morris recently produces its new product, the IQOS Iluma series' exclusive cigarette "Terea." Along with non-combustible products like Terea and Heets, regular cigarettes such as Marlboro, Parliament, and Virginia are also produced. The recently launched Terea, both for domestic use and export, is entirely manufactured here.

There were very few employees working inside the factory. Before seeing the production line in person, one might imagine employees lined up packaging cigarettes one by one as they come down the line, but the place felt almost empty. This is because most processes are automated and require minimal human intervention.

The Illuma-exclusive cigarette product 'Teria' being produced at the Korea Philip Morris Yangsan Factory./Photo by Korea Philip Morris

The stick manufacturing process is broadly divided into two parts: primary and secondary processing. First, the raw material tobacco leaves are crushed and processed into a form called "cast leaf." The tobacco leaves, made in roll form, resembled large rolls of toilet paper commonly seen in public restrooms. When a robotic arm moves these, the subsequent packaging process with filters and sticks takes place. After this stage, the cigarette stick shape is formed, but the process does not end here. It must go through quality checks to confirm there are no issues with weight, size, or other quality factors. Cigarettes that pass inspection are then packaged into cigarette packs and boxes before final distribution. Korean Philip Morris did not disclose exact production volumes but stated that a single machine can produce hundreds of packs per minute.

In addition to production, quality control testing is also conducted at the factory. In a quality laboratory located on another floor of the same building, daily harmfulness tests are performed using machines that inhale cigarette smoke. This is to verify whether the products meet quality standards and to measure the emission levels of harmful substances.

Korean Philip Morris plans to use this Yangsan factory as a forward base for non-combustible product production and aggressively expand its market share. Since launching IQOS in 2017, Korean Philip Morris held the leading position in the domestic e-cigarette market for about five years but lost the top spot to KT&G in the first quarter of this year. With Korean Philip Morris releasing new products and KT&G introducing the AI-equipped new product "Lil Able," competition in the e-cigarette market is expected to intensify further.

Jia Ahmed Karim, head of the Korean Philip Morris Yangsan factory, said, "This Yangsan factory applies strict safety and quality management standards to all production facilities and produces world-class products. We will continue to strive to provide better alternatives to adult smokers and pursue sustainable management activities."

The Illuma-exclusive cigarette product 'Teria' produced at the Korea Philip Morris Yangsan Factory. When the long stick is cut in half, the final form of the cigarette stick is created.
Photo by Korea Philip Morris