KT&G launches new Indonesia plant, completes 5-country production network
KT&G has begun full-scale operations at a new cigarette plant in Indonesia, completing a five-country global production network spanning Korea, Indonesia, Russia, Kazakhstan and Turkey. KT&G said Wednesday that it held an opening ceremony for the plant in Pasuruan, East Java, on Monday Indonesia is one of the world's major tobacco markets and a key export hub in the Asia-Pacific region. KT&G…
KT&G has initiated full production at a new cigarette facility in Indonesia, completing a five-country production network that includes operations in Korea, Indonesia, Russia, Kazakhstan, and Turkey. On Monday, the company held an opening ceremony for the plant located in Pasuruan, East Java. Indonesia represents one of the world's largest tobacco markets and a vital export hub in the Asia-Pacific region.
The South Korean company entered the Indonesian market in 2011 through the acquisition of a local firm. Since then, it has introduced Esse and Juara, its two most popular brands in the country. KT&G currently holds the fourth position in Indonesia's cigarette market.
To accommodate rising demand, the company signed an agreement with Indonesia's Ministry of Investment and the Investment Coordinating Board in September 2023, commencing construction in April 2024. Trial operations began in the first half of 2026. Upon the installation of all nine production lines, the plant is projected to achieve an annual output of up to 21 billion cigarettes.
Coupled with the existing plant's capacity of 14 billion cigarettes per year, KT&G's total production capacity in Indonesia will reach an impressive 35 billion cigarettes annually.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
