KT&G to Build a Second Factory in Indonesia
According to Yonhap News, KT&G Corp. plans to expand its production facilities in Indonesia. The South Korean tobacco company currently operates a factory in Surabaya and plans to build a second one in the Southeast Asian country. The new factory will pro
According to Yonhap News Agency, KT&G Corp. plans to expand its production facilities in Indonesia.
The South Korean tobacco company currently operates a factory in Surabaya and plans to build a second factory in the Southeast Asian country. The new plant will produce KT&G products for export to neighboring countries and other international markets.
According to KT&G, the Indonesian government is supporting the investment.
The expansion aligns with KT&G’s goal of generating half of its sales from overseas business by 2027. The company is targeting 10 trillion won ($7.53 billion) in sales by 2027, compared with 5.9 trillion won in 2022.
In addition to producing conventional cigarettes, KT&G said it will strengthen its heated tobacco and health functional foods businesses.
Since 2020, the company has exported its heated tobacco products to more than 30 countries through a distribution agreement with Philip Morris International.
At present, 90% of KT&G’s total sales come from its cigarette business division, while 10% comes from its heated tobacco business division.
The company has four tobacco manufacturing plants located in South Korea, Russia, Türkiye, and Indonesia, with a combined annual production capacity of 13.6 billion cigarettes.
