Richmond, VA (AHN) - Philip Morris USA has established a $350-million research facility in the hope of producing “healthier cigarettes” that reduce the harmful effects of smoking.

The primary objective of the 137,000 square-meter Center for Research and Technology is to develop products that are supposedly safer to arrest the decline of the manufacturer’s sales. In the U.S., sales have been declining an average of 2 percent yearly.

Rick Solana, the company’s research and technology senior vice president, said he is confident that they will soon offer their loyal customers products that minimize the ill-effects of smoking, but did not elaborate. He said about 500 scientists, engineers and support staff will be working together in the development process.

“Maybe it will be a cigarette, but maybe it will be something else,” he said. “We understand the health concerns of our products. Not only aware with them, but understand them and are doing something about them.”

Manufacturers like Philip Morris are pressured to offer innovative alternatives to the traditional cigarettes in light of the worldwide anti-smoking campaign. In most countries, health warnings are now required to be placed on cartons, labels and advertising materials.

To improve its sales, Philip Morris plans to come up with a smokeless tobacco segment under the Marlboro brand. It wants to develop a “healthier” product that has the same taste, look, burn, drag and feel of a conventional cigarette.

Consumer acceptance, however, is an altogether different matter.

Philip Morris chief finance officer Dinyar Devitre said the company decided to funnel the huge investment into the facility, confident it will improve the revenue stream of Philip Morris in the short term.

Despite a steady decline in demand, Philip Morris is still a market leader, enjoying a 50.6 percent market share in the third quarter. It signature Marlboro brand remains its top seller. The company is also adding more Marlboro blends.

Cigarette smoking causes heart disease, cancer and a host of other illnesses. In the U.S., nearly half a million die of smoking-related illnesses yearly.