KT&G to fully commence operations at new Indonesia plant

*This content was translated by AI.View Original

KT&G has completed its "Global Pentagon Production System," linking South Korea, Indonesia, Russia, Kazakhstan, and Turkey, by fully commencing operations at its new plant in Indonesia.

Indonesia is one of the world's major tobacco markets and a key export hub for the Asia-Pacific region. KT&G first entered the Indonesian market in 2011 through the acquisition of a local company. Since entering the market, the company has launched products such as "Esse" and "Juara," a brand exclusive to Indonesia.

To meet the continuously growing demand from both the local Indonesian market and global customers, KT&G has been pushing forward with the construction of a new plant following its existing first plant in Indonesia. The company broke ground on the new plant in April 2024 and began trial operations in the first half of this year.

The new Indonesia plant will be equipped with nine cigarette manufacturing lines, enabling annual production of up to 21 billion cigarettes. With the addition of the new plant's capacity to the existing plant's production capacity of 14 billion units, Indonesia is expected to become KT&G's largest overseas production country, capable of producing up to 35 billion cigarettes annually.

Following the completion of its new plant in Kazakhstan last April, KT&G has largely completed a significant portion of its large-scale overseas capital expenditure (CAPEX) totaling 2.4 trillion won, which was announced in November 2024, by fully commencing operations at the new Indonesia plant.

A KT&G official, speaking to this outlet over the phone, stated, "We plan to maximize profitability and win in competition through the strategic utilization of production hubs located in key global markets, while continuously enhancing shareholder value and corporate valuation."

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*This content was translated by AI.View Original