KT&G's No. 2 plant in Indonesia begins operations

KT&G Corp., South Korea's leading tobacco company, announced on Wednesday that its second tobacco manufacturing plant in Indonesia has commenced operations. Situated in Pasuruan, East Java, the new facility complements its existing plant in Surabaya. The Indonesian plant will produce cigarettes for export to neighboring nations and other global markets.

With an annual capacity of 21 billion cigarettes, the plant brings KT&G's total production capacity in Indonesia to 35 billion cigarettes, up from 14 billion cigarettes previously. KT&G maintains tobacco operations in five countries, with combined overseas production capacity reaching 65 billion cigarettes. The company's three domestic plants generate 56 billion cigarettes annually.

KT&G aspires to generate half of its sales from overseas by 2027, with projected sales of 10 trillion won ($6.8 billion) in 2025. The company continues to prioritize conventional cigarettes while expanding its heat-not-burn (HNB) and health functional food businesses. HNB products offer a tobacco-based alternative to e-cigarettes, with heated tobacco producing an aerosol for inhalation.

Conventional cigarettes account for approximately 90% of KT&G's sales, with HNB products contributing the remaining 10%.