Tobacco giant Philip Morris warns it may close HK$78 million Hong Kong research centre in light of government proposal to ban e-cigarettes and other new smoking products

Possible closure of the site could put the jobs of more than 60 local employees at risk

Government aims to pass bill banning e-cigarettes and other smoking alternatives as soon as possible, spokesman says

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The effects on the health of users of new smoking products such as e-cigarettes are still unclear. Photo: K.Y. Cheng

Published: 9:00am, 21 Apr 2019Updated: 9:22am, 21 Apr 2019

A multinational tobacco company that spent tens of millions of dollars on opening a research centre for new smoking products in Hong Kong said it may have to close it, putting dozens of jobs at risk, after a government U-turn to ban e-cigarettes.

Tobacco giant Philip Morris invested more than HK$78 million (US$10 million) in the Wong Chuk Hang facility, which opened in July last year, after the previous administration laid out proposals to regulate new smoking products.

But in October, Chief Executive Carrie Lam Cheng Yuet-ngor suddenly announced proposals for a full ban on e-cigarettes and other smoking alternatives – leaving the US company out on a limb.

Brett Cooper, general manager of the Hong Kong and Macau branch of Philip Morris Asia, said the company had been lured to set up the facility in Hong Kong on the promise of innovation and technology, but now the possible closure of the site could put the jobs of more than 60 local employees at risk.

The use of e-cigarettes, known as vaping, is gaining in popularity. Photo: Nora Tam

“There hasn’t been a lot of clarity … the government has changed its mind a little bit. I think that it could have been clearer, as that could help us in terms of investment,” Cooper said.